Biggest Investor In The World: Buy Stocks, Sell Bonds, Sell The Euro

Lawrence (Larry) Fink is a very important man. The company that he co-founded and runs, BlackRock (NYSE: BLK) manages over $3.5 Trillion dollars, more than anyone else in the world. BlackRock made its reputation as a money manager specializing in bonds. Today, the company still manages around $1.25 Trillion in bonds or roughly five time the amount in PIMCO’s flagship Total Return Fund. In other words, Larry Fink is not a person who has any reason to discourage people from investing in bonds.  Yet in an interview on Bloomberg TV today, Mr. Fink said, “When you look at dividend returns on equities versus bond yields, to me it’s a pretty easy decision to be in Equities.”Larry Fink made the following points during his interview.

  • Concerns about Greece are inflated.
  • The ECB will bring down the value of the EURUSD to 1.20 this year.
  • Unless the US Dollar gets too strong, the FED will not do another round of quantitative easing
  • Stocks are at their lowest valuation in 20 to 30 years. Great time to invest.

Larry Fink’s company happens to own iShares, the largest family of ETFs in the world. So if you had money in one of his fixed income funds, he has plenty of stock based investments to sell you. You could buy the iShares S&P 500 Index ETF (IVV) or  iShares Russel 2000 Index ETF (IWM) if you wanted to get long stocks quickly.

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