Rick Rieder runs fixed income investing for BlackRock, but lately he is a big believer in stocks.
Persistently low interest rates, weak inflation and a lack of supply relative to demand for bonds leaves Rieder advocating for equities rather than the fixed income market. Rieder is chief investment officer for fixed income at BlackRock, which is the biggest asset manager in the world, handling $5.7 trillion for clients.
"I think people look at equities wrong. They're not factoring in other dynamics around it," he said Tuesday while speaking at Yahoo Finance's All Markets Summit in New York.
The seemingly endless stock market rally continues to generate fear from investors, with the most recent focus on valuation.
As the S&P 500 has notched another 14.5 percent gain in 2017, the index is now trading at about 19 times earnings, considerably above a longer-term average that's closer to 14 times.
However, Rieder believes that doesn't factor in the role of low global interest rates. He said stocks have 10 percent to 15 percent growth left in them.