Larry Fink: There Is Evidence To Justify Record Highs, But It Might Not Be Where You Think

Larry Fink is the Chairman and CEO of the world's largest asset manager -- BlackRock, Inc. BLK -- so when he says he isn't a believer in the stock market's current momentum, investors tend to listen.

Speaking as a guest on CNBC Thursday, Fink suggested there isn't enough evidence to "justify these levels in the equity market."

His comments come at a time when the Dow Jones Industrial Average and S&P 500 both traded at historical all-time intraday highs in recent days.

Related Link: The S&P 500's New All-Time High Just Doesn't Feel Right, And That's OK

Fink suggested the recent rally in stocks is supported by institutional investors who are covering their short positions rather than investors demonstrating bullish sentiments.

He added that since the Brexit vote, exchange traded funds have seen $18 billion of inflows. On the other hand, mutual funds are seeing outflows.

"What that tells you is retail investors are pulling out," he continued. "You're seeing institutions who were short going into Brexit ... all now rushing in to re-calibrate their portfolios."

Fink also revisited his thesis on Brexit when he was a guest on CNBC. At that time he said he was "nervous" over the voting outcome and now he is worried Britain will face at least a "short-term" recession despite the Bank of England's shocking decision on Thursday to leave its interest rates unchanged.