Stocks to rally in 2021 but not as much as last year


Larry Fink of Blackrock told CNBC on Thursday that he believes the stock market has the potential to move higher. However, the chairman and CEO of the world’s largest asset manager cautioned that the rally may not be as strong as it was in the second half of 2020.

“I think we’re going to continue to see the market going strong in 2021, maybe not as strong as we saw in the fourth quarter or third quarter last year,” Fink said on “Squawk Box.”

The S&P 500 rose more than 20% from 1 July to 20 December. As part of a massive recovery in equity from coronavirus epidemic-induced sales occurring in February and March.

One factor that should provide a tailwind for the market is the amount of cash record investors “record”, Fink said.

“We are seeing investors around the world continuously investing, not investing in long-term assets, and the best source of long-term assets are equity and multiple asset categories in the private sector,” he said.

The presence of low interest rates – and potential monetary policy will remain in place for a while – will continue to bring investors to market, Fink protested.

Fink said he anticipates that the second half of 2021 will be stronger for the market due to the wider rollout of Kovid-19 vaccines, allowing more economic activity to resume. “There’s going to be a powerful component going forward,” he said.

Blackrock shares rose more than 1% in premarket trading on Thursday after reports of better-than-expected profits and revenue in the fourth quarter by a New York-based firm.

Blackrock’s assets under management reached a record $ 8.68 trillion at the end of the quarter. This is up from $ 7.43 trillion in the same period last year.

.

Leave a Reply