Anjali Sundaram | CNBC
U.S. equities lead the rest of the world because “we deserve it,” Fink added on “Squawk Box, ” claiming America has the best companies.
Fink said that many of his clients and hedge funds are taking risk off the table. However, he believes such a move is a mistake, advising investors to stay invested in stocks.
The co-founder of the world’s largest money manager said on CNBC in mid-April that he thought the global stock rally had further to run.
However, the S&P 500 ended up tanking in May, dropping about 6.6% for the month, as trade talks fell apart with China, and breaking a four-month winning streak.
June roared back as the Federal Reserve opened the door for easier monetary policy, with the S&P 500 jumping nearly 7% for its best June performance since 1955.
The stock comeback continued in July as expectations for a Fed interest rate cut mount at the central bank’s July 30-31 policymaking meeting. The S&P 500 was less than 1% away from last week’s record close.
The markets feel a July Fed rate cut is a lock, with odds 0.25% reduction at about 55% and the chance for a more aggressive 0.5% cut at about 45%.
Fink said Friday that he believes the Fed will be conservative, calling central bankers “incrementalists,” preferring several 0.25% cuts over fewer bigger moves.