- 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.
“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.
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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 and more money to work … I do believe that pandemic actually has created that fear of the future and a response is now is a higher savings rates in America, a higher investment rate for the long term.”
Fink’s interview aired shortly after BlackRock reported beating consensus quarterly earnings and revenue expectations.