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Larry Fink of BlackRock told CNBC on Thursday that he believes the stock market has even more leeway to rise. However, the CEO of the world’s largest asset manager has warned that the rally may not be as robust as it was in the second half of 2020.
“I think we’re going to continue to see the market being strong in 2021, probably not as strong as what we saw in Q4 or Q3 of last year,” Fink said on “Squawk Box”.
The S&P 500 rose more than 20% from July 1 to December 31 as part of a massive rally in stocks following the sell-off induced by the coronavirus pandemic that occurred in February and March.
One factor that should provide a positive wind for the market is the “record” amount of liquidity investors have on the margins, Fink said.
“We are constantly seeing investors around the world under-invested, not over-invested, in long-term assets, and the best source of long-term assets are stocks and many asset classes in the private sector.” , did he declare.
The presence of low interest rates – and the likelihood that accommodating monetary policy will be in place for some time – will continue to attract investors to the market, Fink said.
Fink said he expects the second half of 2021 to be stronger for the market than the first half due to the wide deployment of Covid-19 vaccines, allowing more economic activity to resume. This “is going to be a powerful element of future growth,” he added.
Shares of BlackRock rose more than 1% in pre-market trading on Thursday after the New York-based company reported better-than-expected earnings and earnings in the fourth quarter.
BlackRock’s assets under management hit a record $ 8.68 trillion at the end of the quarter. This is an increase from $ 7.43 trillion in the same period last year.
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