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Fink: Record Cash Going into Stocks

By Dan Weil   |   Thursday, 12 Nov 2009 11:04 AM

Laurence Fink, CEO of money management titan BlackRock, says investors are exiting cash for financial markets in record numbers.

But he doesn’t see that trend creating a bubble.

"We are seeing a record amount of cash being put to work,” Fink told The Wall Street Journal.

“The firm on Dec. 1 will have over $3 trillion in assets… I’ve never seen more flows going out of cash into something else.”

Why the record shift? Thank the Fed, he says.

“I think it’s playing out as it should. The Federal Reserve is telling investors you’re fine.”

Even hedge funds are seeing big inflows, Fink says. “We’re starting to see money migrate into different categories.”

As for bubbles, they don’t happen when people are talking about them, he says.

“Bubbles are occurring when people aren’t aware of it. . . . There are just too many articles about this liquidity bubble again.”

Fink is bullish on stocks, though he says a correction may be in the offing.

“Can the market set itself back itself 10 percent? Sure. Is that a problem? No.”

Investment guru Jeremy Siegel is even more enthusiastic.

“I think there are a lot of legs to this bull market,” the Wharton professor told Bloomberg. “Profits are coming in extremely well in the third quarter.”

Rather than talking about a correction, Siegel predicts stocks will rise another 10 percent this year.

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Laurence Fink, CEO of money management titan BlackRock, says investors are exiting cash for financial markets in record numbers.But he doesn’t see that trend creating a bubble."We are seeing a record amount of cash being put to work,” Fink told The Wall Street Journal. “The...
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