Skip to main content

Strong support from accommodative central banks across the globe and potentially another large round of fiscal stimulus both in the United States and Europe mean financial markets have more upside than downside, BlackRock Inc. chief executive Larry Fink said on Tuesday.

Globally, investors remain under-invested, Mr. Fink said in an interview.

“With central banks' behaviours being very accommodative, with I believe, another very large round of fiscal stimulus in the United States and Europe ... these are the great foundational reasons why markets have more upside than downside,” Mr. Fink said.

Story continues below advertisement

Financial markets rallied in the third quarter, extending the second quarter’s dramatic rebound from a pandemic-fuelled low hit in March, as accommodative global central banks and improving growth prospects lifted risk appetite. The S&P 500 rose 8.5 per cent for the quarter ended Sept. 30.

Despite parts of the economy rebounding strongly from the shock of the coronavirus pandemic, there remains a need for fiscal stimulus, mr. Fink said.

“We are seeing a very uneven economy,” he said.

“I am a firm believer we have a strong need for a very directed, targeted stimulus,” he said.

“The stimulus is not going to be broad-based because there are major segments of the economy that are doing very well and there are components of the economy that are doing poorly.”

Republicans and Democrats in Congress have been unable to agree on how much new cash the federal government should give out, who it should go to, or how any new bill should combat the coronavirus pandemic.

U.S. House Speaker Nancy Pelosi rejected President Donald Trump’s latest offer on COVID-19 stimulus on Tuesday, in the latest sign that a bipartisan deal on coronavirus relief remains unlikely ahead of the November election.

Story continues below advertisement

On Tuesday, BlackRock’s quarterly results beat analysts' estimates, helped by broad-based strength in its businesses.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Follow related topics

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies