Larry Fink at the Annual Meeting of the Institute of International Finance
Larry Fink, the chairman and CEO of BlackRock (BLK), recently shared his views on the global market (ACWI)(VTI), political uncertainty, the volatility index, and a potential setback in the market (SPY)(QQQ). He spoke at a panel discussion at the annual meeting of the Institute of International Finance in Washington on Friday, October 13.
Larry Fink on the market correction
Fink said he expects “a pretty large setback” in the market. Rising political uncertainty or any major event that may not happen in the near future could cause this kind of setback. He said, “I am just saying if there is a major event, which I don’t foresee, but if there is one, we could have a big correction.”
The United States (IWM) is eagerly awaiting tax reform. The huge expectation for a tax reform bill is driving market movements. A reduction in corporate tax structure from 35% to 20% could create lots of savings for businesses, which could invest this money in other projects or expand their production capacity. According to Jamie Dimon, this reform could also create nearly 2 million new jobs.
However, Fink doesn’t foresee any major economic event. If this reform doesn’t place, we might see a strong correction in the market.
In the next part of this series, we’ll analyze Fink’s views on market volatility.