a man wearing glasses and looking at the camera: Shannon Stapleton/Reuters


© Shannon Stapleton/Reuters
Shannon Stapleton/Reuters

  • BlackRock CEO Larry Fink told CNBC on Tuesday stocks have more upside ahead and most investors should put more money to work in the market.
  • “I believe we still have more to go on the upside even in front of probably rising infection rates with COVID-19,” Fink said. 
  • With interest rates lower for longer and the likelihood of a second fiscal stimulus, Fink expects the market to move higher.

BlackRock CEO Larry Fink told CNBC on Tuesday that stocks have more upside ahead and investors should put more money to work in the market. 

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“We have a strong conviction that the average investor still is under-invested and they’re going to have to be putting more and more money to work over the coming months and maybe even years,” Fink said. “I believe we still have more to go on the upside even in front of probably rising infection rates with COVID-19.” 

The CEO of the world’s largest asset manager said that he’s not concerned about markets, citing the Federal Reserve’s plan to keep interest rates lower for longer, and saying he expects the US will see another fiscal stimulus “whether it occurs this month or in January.” He added that even as coronavirus infection rates rise, hospitalizations are falling. 

Read more: Good deals in pandemic-hit companies are proving hard to find. Here’s how big investors that raised billions to pounce on corporate distress are changing up their playbooks.

Another factor likely supporting the stock market’s climb upward is the record amount of retail participation, Fink said. He added that the coronavirus pandemic likely caused this surge in individual investing activity.

Fink told CNBC: “You report a lot about Robinhood and the day traders but across the board the average investor is putting more

BlackRock, the owner of the wildly popular iShares family of exchange-traded funds and the world’s largest asset manager, has gotten even bigger during the Covid-19 pandemic. BlackRock said Tuesday that it now has $7.8 trillion in assets under management, a 12% increase from last year.



a man in a cage: A pedestrian wearing a protective mask walks past BlackRock Inc. headquarters in New York, U.S, on on Thursday, July 9, 2020. BlackRock is scheduled to release earnings figures on July 17. Photographer: Jeenah Moon/Bloomberg via Getty Images


© Jeenah Moon/Bloomberg/Getty Images
A pedestrian wearing a protective mask walks past BlackRock Inc. headquarters in New York, U.S, on on Thursday, July 9, 2020. BlackRock is scheduled to release earnings figures on July 17. Photographer: Jeenah Moon/Bloomberg via Getty Images

The continued allure of passively managed index funds is a big reason why BlackRock is thriving during these volatile times for the market. BlackRock said that iShares raked in $2.3 trillion in assets during the third quarter — and nearly 70% of that total was for stock funds.

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BlackRock disclosed the numbers in its latest earnings report Tuesday. Revenue and profit easily surpassed Wall Street’s forecasts.

“As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients’ needs with global insights, strategic advice and whole-portfolio solutions,” said BlackRock CEO Larry Fink in a press release.

Shares of BlackRock rose more than 4% on the news. BlackRock’s stock has now surged nearly 25% in 2020 thanks to its strong results. The asset management company is thriving at a time when most other Wall Street investment banks are struggling.

JPMorgan Chase, despite posting solid results of it own Tuesday morning, is still down more than 25% this year. Shares of rivals Citigroup, Bank of America and Goldman Sachs are all in the red for 2020 as well.

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TOKYO – The dollar flirted with three-week lows on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies.

The dollar index stood at 93.036, just above Friday’s near-three-week low of 92.997. The euro traded at $1.1841, having gained 0.60% on Monday.

“It seems there is a strong optimism that eventually there will be stimulus. It is hard to argue against fiscal expansion given the coronavirus epidemic is almost like a natural disaster,” said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

DOLLAR’S RECENT DIRECTION POINTS TO BIDEN WIN

While markets are getting sceptical about the chances of having a bipartisan package before the election, a widening lead by Democratic presidential candidate Joe Biden over President Donald Trump is leading investors to expect big stimulus after the election.

A Biden victory is also seen as negative for the dollar partly because his pledge to hike corporate tax would reduce returns from investments in the United States.

The dollar flirted with three-week lows on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies. (iStock)

Thus the dollar also weakened against currencies that are deemed “safer” – those that tend to have small or inverse relations with risk sentiment – such as the yen and the Swiss franc.

The yen strengthened to 105.34 per dollar while the Swiss franc traded at 0.9102 to the dollar, near its highest in three weeks.

Sterling traded above the key $1.30 level as hopes for a Brexit deal offset concerns about pressure

Nearly three years following the arrest – and subsequent flight from justice – of Nissan Motor Co. (OTCPK:NSANY) Chairman Carlos Ghosn for alleged financial misdeeds, the automaker is struggling to regain stability and momentum after the related falling out with its one-time alliance partner, French automaker Renault SA (OTCPK:RNLSY).

The worldwide collapse of automotive production in the second quarter, a consequence of the global pandemic, has further wounded an already-hobbled Nissan.

Key to Nissan’s recovery is a return to profitability, which likely hinges on success in its most important and profitable market, the U.S. Sales in the U.S. reached a peak of about 1.6 million in 2017, falling to 1.2 million for the fiscal year ended on March 31.

Steep Loss, Shrinking Capacity

In May, Nissan posted a $6.2 billion loss and announced a program to cut global vehicle-making capacity. The automaker has been operating manufacturing capacity to produce about seven million light vehicles, though it barely can sell five million.

CEO Makoto Uchida said he hoped Nissan would be generating positive cash flow by the end of 2021. Nissan also said it would be cooperating more closely with Renault, which owns 40% of its shares. The cooperation entrails Nissan’s focusing efforts on Japan, China and the U.S. – while letting Renault SA concentrate on Europe and Latin America. (A third alliance partner, Mitsubishi Motors (OTCPK:MMTOF), will put its efforts toward the southeast Asian market). Under the restructuring, Nissan is cutting global capacity to 5.4 million vehicles.

Among the Nissan plants to survive the cut is its massive complex in Smyrna, Tennessee, where the new third-generation Rogue is being built. To maximize capacity for Rogue, Nissan is moving production of the Altima sedan to its plant in Canton, Mississippi, which until now had been devoted mostly to trucks

Emerging markets have had different approaches to coping with COVID-19 and are at different stages of recovery. Our emerging markets equity team examines trends, news and data shaping emerging markets in the third quarter, and shares its latest outlook.

Three Things We’re Thinking About Today

  1. Brazil has been among the hardest hit by the COVID-19 pandemic, just behind the United States and India in the number of reported cases. However, we have started to see the number of new cases in Brazil start to decline. Ironically, we believe that the government’s decision against implementing a country-wide lockdown at the onset of the pandemic has reduced the likelihood of a second wave. Heavy government spending and monetary policy easing have helped bring some stability to the economy. Moreover, Brazil has continued to implement key reforms despite political noise. In terms of investment opportunities, we continue to favor the financials sector, especially companies with strong capital market exposure. Interestingly, Brazil’s stock exchange itself has a strong sustainability agenda, while environmental, social and governance (ESG) principles are not only implemented within the exchange itself, but also promoted in the Brazilian stock market broadly. E-commerce is another exciting investment theme, with several large players competing in the online space. As in other countries, the COVID-19 crisis has accelerated the adoption of internet-based retailing in Brazil. Despite continued uncertainties, our view on Brazilian equities is generally positive.

  2. The COVID-19 pandemic has underscored the importance of health care in China, reinforcing existing structural trends that could drive a new wave of innovation in the country. Multiple factors are propelling domestic drug and medical device development including rising health care demand, an aging population, growing lifestyle diseases and rising income, coupled with government efforts to strengthen the health care system. In addition, the growing numbers of overseas-educated