BlackRock President: Buy Global, Dividend-Paying Stocks
The last week of market gyrations has been "disheartening" for Robert Kapito.
The president of BlackRock, with $3 trillion in assets under management, told CNBC Friday his company has talked to over 20,000 clients, "trying to make sure they remain calm and focus on finding great opportunities in this market."
It’s disheartening, he said, "because we’re hearing the same thing — there’s no growth strategy in America right now, there‘s no leadership, there’s no plan to put people to work."
However, BlackRock is still advising clients to have 60 percent of their portfolios in stocks, 20 percent in corporate bonds and 20 percent in commodities.
"We're talking about global equities" such as Verizon , Merck and Intel , "all with very, very good dividends, dividends that are much higher than what you can get in the Treasury market," Kapito said.
Corporate bonds are for portfolio diversity and because their "ability to pay back [shareholders] is very, very high," he continued.
As for commodities, he said investment is easy through exchange-traded funds. Buying gold is a given but grains are another possibility, because "when people around the world do better they want to eat better."
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Disclosure information was not available for Robert Kapito or his company.