Are the lessons of 2008 long forgotten? The case could be made, judging from BlackRock CEO Larry Fink’s latest advice.
Fink told Bloomberg Television from Hong Kong that investors should have 100% of investments in equities due to low valuations and higher returns than bonds.
“Investors who seek the safety of treasury bonds will have minimal returns and will not be able to meet their needs as the Federal Reserve is expected to keep interest rates low,” Fink told the news service Wednesday. By contrast, equities are trading at the lowest valuations in 20 or 30 years.
“I don’t have a view that the world is going to fall apart, so you need to take on more risk,” he said. “You need to overcome all this noise. When you look at dividend returns on equities versus bond yields, to me it’s a pretty easy decision to be heavily in equities.”