Stocks Are Much Cheaper Than Bonds: BlackRock’s Fink
“You’re not going to ever achieve the necessary pool of money that you need [by] buying bonds,” Fink said in a CNBC “Squawk Box” interview. “On a relative basis, stocks are much cheaper than bonds.”
The CEO of BlackRock , the world’s largest asset manager, stressed the need for “objective investment” during this stretch of financial turbulence.
“It’s an irresponsibility of focusing on the [current] movement of the markets. I want to focus our investors on that idea of investing for the long term,” said Fink.
He also acknowledged the firm’s recent secondary offering on Facebook as an opportunity for long-term profits, an example of how stocks can grow into valuable assets down the road.
“To me, the balance between where interest rates are and long-term equity holdings of strong dividend stocks is pretty compelling,” Fink commented. “Stocks, to me, represent the best value in many, many years …. They’ve underperformed for 10 years, and now so many people are shying away. To me, it’s the obvious time to be back in.”
—By Reid Spagna, Special to CNBC.com
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No disclosure information for Larry Fink or Blackrock was available.