BlackRock CEO Larry Fink was just on CNBC.Here’s what he said:
He’s bullish on equities and he doesn’t think we need QE3.
“I don’t see any reason to think we need a QE3.”
Expectations this year were too high, he says.
We’re going to be in this 2ish, 2.5% per cent for the rest of the year.
Bill [Gross] is a great investor, he has a different view.
BlackRock’s view: there will be so little demand for bonds that it’s not a huge profit opportunity.
The market became a little too expensive in high yield, and the fixed income market and especially the high yield market, but now the entry into that market is looking pretty good.
The private sector is truly benefitting from the weak dollar right now. (He’s also bullish on the dollar.) He thinks the private sector’s in a great position.
On the country’s economic challenges right now: which is more important, sparking growth or reducing debt?
That is THE question, he says.
The government has been giving and giving throughout our entire lifetime. Now it’s taking away and that’s a huge change.
We’re starting to attract jobs back into the country… We’re going to overcome this growth in the private sector.
ON REGULATION AND WASHINGTON AND WALL STREET:
“Washington is a partnership” — if Washington puts too much constraints on the private sector, we WILL inhibit that kind of growth. And that relationship has to be mitigated.
[This is a big issue now that Jamie Dimon recently spoke out about — the government putting too many regulations on the banks. Dimon suggested to Ben Bernanke earlier this week that so many restrictions were slowing growth and job creation.]
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