US Equities Are Cheap, 'Under-Invested': Larry Fink
BlackRock CEO Larry Fink isn't surprised by the recent climb in U.S. equities, as the asset class remains "very cheap," he told CNBC Thursday.
Speaking from the trading floor of BlackRock —which with more than $3 trillion in assets under management stands as the world's largest money manager—Fink said the U.S. equity market remains one of the "most under-invested" asset classes today.
"People have underinvested in U.S. equities for years—people have over-invested in fixed income," he said. The long-running rally in fixed-income, Fink added, has left equities "very cheap versus where credit spreads are."
Besides U.S. equities, within which he particularly "loves" U.S. large-cap multinationals with exposure to developing markets, Fink also endorsed Japanese equities, which have been hit by the devastating earthquake and tsunami in that nation.
"I would look at the market pullback in Japan as an opportunity to buy," Fink said.
On Europe, the BlackRock CEO said volatility in sovereign credit markets shouldn't deter investors wholly from the continent, particularly as "corporations in Europe are in very good shape."
"You can be bearish on Europe Inc., but be constructive on some of the companies that are more global," Fink said, pointing out Nestle and Siemens , specifically.