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BlackRock's Fink Talks US Stocks, China

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BlackRock's Fink Talks US Stocks, China

U.S. stocks "deserve" to lead the global bull charge, because the country is home to "better companies" and better policies, according to BlackRock, Inc. (NYSE: BLK) CEO Larry Fink.

Monetary Vs. Fiscal Policy

BlackRock is the world's largest money manager, with $6.8 trillion in assets under management.  The company's CEO expressed a bullish stance on U.S. stocks during a Friday CNBC interview. Speaking as a guest on "Squawk Box," Fink said U.S. stocks also benefited from "more fiscal policy than other countries" rather than merely relying on monetary policy.

Monetary policy has limited tools and merely "monetizes financial assets," such as bonds and stocks, he said.

Yet the "general population," especially people in Europe, doesn't own bonds and stocks, so most monetary stimulus measures don't benefit a large segment of the population, Fink said. 

Fiscal policy, on the other hand, can include tax reduction and job creation that "lifts more people" up, the CEO said. 

China Trends 'Downward'

China's most recent GDP figures shows the company grew by 6.2% in the second quarter.

While this metric does show a slowdown, it is also a number that makes other countries "envious," Fink also said in the CNBC interview.

The longer-term trend in China "continues to be downward" and comes at a time when Fink said he is hearing from CEOs that "more and more" supply chains are moving out of the country.

Companies and their executives aren't sitting around to wait and see what the outcome from the Sino-American trade dispute will be, he said. 

BlackRock shares were higher by 0.59% at $477.96 at the time of publication Friday. 

Related Links:

BlackRock's Larry Fink Tells CNBC He Sees Lack Of 'Good Assets'

Bond ETFs To Hit $2 Trillion In Five Years, BlackRock Says

Posted-In: CNBC Larry Fink Squawk BoxNews Management Media Best of Benzinga

 

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