Markets have More Upside than Downside: BlackRock CEO Larry Fink
Stock markets have more upside than downside as per BlackRock Incorporated CEO Larry Fink. Markets across the world have recovered from the shock led by COVID-19 pandemic and after initial sell-off in March 2020, the recovery in stocks has surprised many market experts. Many market participants are uncomfortable with the quick recovery in the markets as the economic impact of COVID-19 is still not clear. However, Fink said that a large stimulus package would be required from the US government and European Union for the economic recovery once COVID-19 pandemic is under control. Fink said that there is a strong need for a highly targeted stimulus.
Many market experts believe that markets have turned a blind eye to the economic troubles we could face in future. The pandemic has resulted in major trouble for many sectors and decline in earnings for people working in those sectors could impact long term consumption trends. And, the quarterly results for next 4-6 quarters will help us determine the impact of COVID-19 pandemic.
Talking about the strength in the stock markets, Fink said, “With central banks' behaviors being very accommodative, with I believe, another very large round of fiscal stimulus in the United States and Europe. These are the great foundational reasons why markets have more upside than downside.”
Commenting on the stimulus from the US government, Fink added, “The stimulus is not going to be broad-based because there are major segments of the economy that are doing very well and there are components of the economy that are doing poorly.”