The world’s largest investment company Blackrock Larry Fink in an interview with CNBC stated that he sees a bright future at the US stock market.
“I have an incredibly bullish attitude,” said Fink, meaning the bullish trend in the stock market, as the situation of growth in quotations. According to the financier, in the near future it expects the further growth of the main indices – even though most of them are already on the values close to the record.
This will be in many ways to promote the stimulating measures of the authorities: a new package of assistance from the government with a volume of 1.9 trillion dollars, announced by US President Joe Biden, and the ongoing quantitative mitigation program (repurchase from banks of state and commercial bonds) from the Federal Reserve System.
During the coronavirus pandemic, the behavior of consumers around the world, including in the United States, has seriously changed, the Fink stated. They reduced the demand for goods and services, preferring to save and save funds, but thanks to support measures that include direct payments to citizens, people received an incentive to go to the stock exchange, and not just keep funds in bank accounts.
At the same time, in the long run, risks for the stock market still remain, Fink noted. Among them, the probability that coronavirus vaccines will be ineffective because of its mutations, as well as the increased budget deficit, which in the future will lead to increasing taxes and rise in price of borrowing. All this will entail investors from the stock market to the bond market.