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.

Is Larry Fink Confident about a Big Market Correction?

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.

Latest articles

Last week (ended August 16) was rough for Canopy Growth (WEED)(CGC) stock. It fell about 14% after the company's fiscal 2020 first-quarter earnings report.

Apple shares rose close to 3% in early hour trading on Monday. So, why is Apple stock trading higher? The market sentiment might have turned positive.

In April, Amazon announced its plan to transform its free two-day shipping program to a free one-day shipping program for its Prime customers.

Cannabis companies face regulatory challenges. Recently, CannTrust (CTST) didn't comply with Health Canada’s regulations.

China’s state media agency, Xinhua News Agency, reported on August 18 that police had seized a FedEx parcel containing a handgun.

As of August 17, Curaleaf Holdings (CURA) (CURLF) was trading at 9.00 Canadian dollars—a fall of 13.5% in August.