US stocks will trend even higher

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Larry Fink

Anjali Sundaram | CNBC

The U.S. stock market should move higher from the near-record, current levels, BlackRock Chairman and CEO Larry Fink told CNBC on Friday.

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.

CNBC’s before the bell news roundup

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