LARRY FINK SAYS NOW IS THE TIME TO BUY STOCKS
In an interview with the WSJ this morning Larry Fink, the CEO of BlackRock, is sounding quite bullish. Attached are his thoughts from the interview, courtesy of the WSJ:
On the stock market:
“A record amount of cash is being put to work,” said Fink. “We’ve seen huge flows, even into hedge funds. Money is migrating to different categories.”I think you could buy equities today and feel somewhat safe.”
On his firm’s issues with commercial real estate:
“We probably had an overzealous view of where commercial real estate was going to go.”
On the U.S. dollar:
“I don’t think it’s going to fall that far.”
The big issue for 2010:“Where will the capital come to finance America next year? I haven’t seen the issue debated, but one of the biggest issues in America right now is the loss of the Fed’s purchasing power [of mortgages] in April.”
On private capital staying out of the market:
“I hope the private sector will come in. Loan modification is frightening away lenders. They are reluctant to buy mortgage securities because of uncertainty around first lien. Investors are worried about contract law.”
Is there another bubble forming as the Fed continues to buy up mortgage securities, while propping up other aspects of the economy?
“Bubbles don’t occur when you’re talking about…There are too many articles about it…In my mind it would mean we’re going to have a more significant [economic] decline. I don’t see that.”
Interesting comments, but pieces of his macro outlook appear to be at odds. He is concerned about America’s financing in 2010 and the private sector, but remains a stock market bull? Meanwhile, he says the dollar doesn’t have too far to decline. Dollar bull, equity bull, worried about funding, concerned about the private sector, sees markets awash in liquidity, but doesn’t see the chance of any bubbles….Hmm. He is either hedging himself or extremely confused.
>> He is either hedging himself or extremely confused.
LOL – this is my laugh of the day. Thanks TPC and Larry Fink.
It’s hilarious. Those outlooks make no sense….
My thoughts exactly.
HAHAHA! That is funny, almost as good as the God’s work comment yesterday!
He’s wrong. You cannot buy or short right now and feel totally okay with it. But you CAN trade. The gods of Wall Street are such pieces of crap. He, of all people should know that if dollar pressures abate, then the markets aren’t going to fly much higher. So like you said TPC he is full of contradictions. The government having funding problems NOW when the social security and medicare bombs haven’t gone off yet is the problem of the CENTURY. And unlike some BS sub prime mortgage securities, the U.S. government failing will decimate everything. And something has to change or that is where we are going, and I am not the only one who thinks that, gold does too.
He probably wants YOU to buy HIS stocks. But “I think you could buy equities today and feel SOMEWHAT safe” doesn’t really sound like a buy call to me. Sounds more like a hold.
Wall Street has lost all credibility. Weren’t these the same people running for their lives about a year ago, telling anyone that would listen that the day of reckoning has finally come after decades of overspending? And now everything’s…okay?
Don’t people understand? People like Larry Fink NEED our money so they gamble with it again. Without the money from our brokerage accounts and mortgages the robots don’t have any money to trade with. We’re the enablers.