Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Shares for rally in 2021, but not as much as last year

Shares for rally in 2021, but not as much as last year

BlackRock’s Larry Fink told CNBC on Thursday that he believes the stock market has room to run, but the leader of the world’s largest asset manager warned that the demonstration may not be as robust as it was in the second half of 2020.

“I think we will continue to see the market strong in 2021, probably not as strong as we saw in the fourth quarter or third quarter last year,” said BlackRock chairman and CEO of “Squawk Box.”

The S&P 500 rose more than 20% from July 1

to December 31 as part of a massive recovery in shares from coronavirus-pandemic-induced sales in February and March.

One factor that should provide a tailspin for the market is the record amount that investors have on the sidelines, Fink said.

“We see renewable investors around the world underinvested, not overinvested, in long-term assets, and the best source of long-term assets is stocks and many asset classes in the private sector,” he said.

The presence of low interest rates – and the likelihood that accommodative monetary policy will be in place for some time – will continue to drive investors into the market, Fink argued.

Fink expects the second half of 2021 to be stronger for the market than the first half of the year due to the broad rollout of Covid vaccines, allowing for resumption of more economic activity. It will be “a strong component of future growth,” he said.

Shares of BlackRock were under pre-market trading on Thursday after the New York-based firm reported better-than-expected fourth-quarter earnings and revenue.

BlackRock’s assets under management rose to a record $ 8.68 trillion at the end of the quarter. That’s an increase from $ 7.43 trillion over the same period last year.

Source link