BlackRock’s Larry Fink told CNBC Thursday that he believed the stock market was practicable, but the head of the world’s largest asset manager said the rally wasn’t as strong as late 2020. I warned that it might not be.
“I think the market will continue to be strong until 2021, probably not as strong as last year’s fourth and third quarters,” BlackRock Chairman and CEO said of Squawk Box. It was.
The S & P 500 rose more than 20% from July 1st to December 31st as part of a significant recovery of stocks from the February and March coronavirus pandemic sold out.
One of the factors that should give the market a tailwind is the record amount of money investors are on the sidelines, Fink said.
“We always see investors around the world underinvesting in long-term assets rather than over-investing. The best sources of long-term assets are stocks and many asset categories in private areas,” he said. ..
Fink argued that the existence of low interest rates and the possibility of accommodative monetary policy being implemented for some time would continue to push investors into the market.
Fink predicts that the widespread deployment of the Covid vaccine will make the market stronger in the second half of 2021 than in the first half, allowing more economic activity to resume. “It will be a powerful factor for future growth,” he said.
BlackRock shares were slightly higher in pre-market trading on Thursday after a New York-based company reported higher-than-expected profits and earnings in the fourth quarter.
BlackRock’s assets under management surged to a record $ 8.68 trillion at the end of the quarter. This is an increase from $ 7.43 trillion over the same period last year.
Stocks to recover in 2021, but not as much as last year
Source link Stocks to recover in 2021, but not as much as last year