BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday that financial markets are stuck in a temporary funk, and stocks should end the year higher.
In a "Squawk Box" interview from Davos, Switzerland, Fink also predicted the European Central Bank will launch its own quantitative easing program at its highly anticipated meeting Thursday. He said it will probably buy hundreds of billions of dollars of bonds to fight slowing euro zone economic growth and deflation. On Wednesday, the Bank of Japan said it's keeping its massive monetary stimulus in place.
U.S. stocks were under pressure in early trading Wednesday, after the Dow Jones Industrial Average was able to wipe out a nearly 200-point loss Tuesday to finish a bit higher. So far this year, the Dow was down nearly 2 percent as of Tuesday's close.
"I'm quite surprised how the narrative has turn[ed] everything to the negative," Fink said. "We go through these really big bouts of negativity and then we get some stability going. All the actions I see will lead to a higher equity market by year end."
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Oil prices were moderately rebounding Wednesday morning, after Tuesday's 4.7 percent decline in New York trading. "Lower energy prices is probably the largest redistribution of wealth that we've seen in our lifetimes," Fink said.
