Tags: BlackRock | Fink | Excesses | Stocks

BlackRock's Fink: Selling "Weeded Out the Excesses" in Stocks

Tuesday, 21 October 2014 05:10 PM

BlackRock Inc. Chief Executive Officer Laurence D. Fink said the selloff last week in U.S. equity markets “weeded out the excesses,” making stocks a good investment for those who aren’t going to sell their positions soon.

“As a long-term investor, yes, I’d be buying equities today,” he said Tuesday in an interview with Bloomberg Television’s Erik Schatzker. “This is just a market correction, and we need market corrections to clean the market out.”

Fink, who leads the world’s biggest money manager with $4.5 trillion in assets, said he received many calls from regulators globally in the last week, as market volatility increased and stocks slumped. The Standard & Poor’s 500 Index plunged 7.4 percent from its peak on Sept. 18 through Oct. 15, as economic reports reignited concerns about a global slowdown and investors worried about the fallout from the spread of Ebola.

That “blood” in the market was caused by “hot money” and hedge-fund borrowing, said Fink, who suggested that leveraged products require more regulatory scrutiny.

“There is certainly a heightened worry about whether there is too much leverage within the system,” he said.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
BlackRock Inc. Chief Executive Officer Laurence D. Fink said the selloff last week in U.S. equity markets "weeded out the excesses," making stocks a good investment for long-term investors.
BlackRock, Fink, Excesses, Stocks
185
2014-10-21
Tuesday, 21 October 2014 05:10 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved