Broker Check

This market is due for some sanity and earnings surprises above and beyond any fear of the Fed

November 07, 2023

Larry Fink, who runs the biggest money management firm in the world, just said yesterday, "I'm more optimistic than ever," He says investors should be 100% in equities right now if they can handle it. Here's where he's channeling that optimism.

There's plenty of doom and gloom about the global economy right now. But Blackrock's (NYSE: BLK)CEO Larry Fink seems to have spotted a silver lining in the midst of the dark clouds. "I'm more optimistic than ever," he told CNBC's Jim Cramer in a recent interview.
With $9 trillion in assets under management and one of the most popular index funds in its arsenal, Blackrock has unique insight into the state of the economy. This is why optimism from the world's biggest asset manager is noteworthy. "We have a better texture on the market through our ETF platform and global network," Fink says.

Fink acknowledges the headwinds, specifically related to geopolitical tensions in the Middle East and sticky inflation. But he says he's growing increasingly optimistic about long-term trends that overlap to create unique opportunities for investors. Consequently, he believes investors with the right risk appetite should be at least 80% in equities and perhaps 100% if they can handle it. Here are some of those overlapping trends he loves right now.

My caveat to his comments is that he runs a money management firm that makes money on fees and, therefore, benefits if more people move into his funds. That being said, I still believe what he believes, and that is that the long-term trends remain in place and that this market is due for some sanity and earnings surprises above and beyond any fear of the Fed. For that reason, I agree with Mr Fink and am fully invested.


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