The chief executive of exchange traded fund manager BlackRock is throwing down the gauntlet on stocks, saying investors should be 100% in equities, according to a report Wednesday.
“I don’t have a view that the world is going to fall apart, so you need to take on more risk,” said Larry Fink, CEO of BlackRock — which manages the iShares ETFs — in a Bloomberg report. “You need to overcome all this noise. When you look at dividend returns on equities versus bond yields, to me it’s a pretty easy decision to be heavily in equities.”
Investors who have piled into the safety of U.S. Treasuries will see lackluster performance with the Federal Reserve pledging to keep rates low for years to support the economy, Fink said.
“I’m very bullish on the market,” Fink said in the Bloomberg article. “I think the market is focusing too much on noise like Greece. And yet we’re going to have a lot of volatility and we’re going to have to live with it.”
Global ETFs that invest in fixed-income assets saw record inflows in January, BlackRock said in a separate report Wednesday. [Search for Yield Drives Record Bond ETF Buying]
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