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BlackRock’s Fink: I'd Put All My Money in Stocks if I Could

Thursday, 30 Jun 2011 07:59 AM

Larry Fink, head of the BlackRock asset management firm, would put 100 percent of his money in stocks right now if he could.

Debt worries in the United States are steering him away from treasurys right now, and equities are cheap right now.

"I am not afraid of treasurys but if my accountants would allow me I would be 100 percent in equities," Fink tells CNBC.

Debt concerns in the U.S. are likely here to say even if Republicans and Democrats come to an agreement on lifting the $14.3 trillion debt ceiling by Aug. 2 and avoid a default.

Both sides are working to shave $2 trillion from the country's debt over the long-term.

"The U.S. cannot kick the can down the road anymore. We are going to see a $2 trillion down payment on the deficit before Aug. 2. It needs to be between $4 trillion-$6 trillion," he says.

"If you are worried about sovereign debt or the Treasury market there may be more safety in strong equities or corporate debt issued by those strong firms."

The International Monetary Fund, a global lender of last resort, has said shockwaves will rumble across world markets if Congress doesn't lift the debt ceiling.

"The federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets," the IMF said in a report on the U.S. economy, according to Bloomberg.

Failure to reach a budget and debt compromise could result in a "sudden increase in interest rates and/or a sovereign downgrade," the IMF said.

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Larry Fink, head of the BlackRock asset management firm, would put 100 percent of his money in stocks right now if he could. Debt worries in the United States are steering him away from treasurys right now, and equities are cheap right now. I am not afraid of treasurys...
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2011-59-30
Thursday, 30 Jun 2011 07:59 AM
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