BlackRock CEO Larry Fink: 'The market will be higher in 10 years'

BlackRock (BLK) CEO Larry Fink is bullish about the long run.

“The market will be higher in 10 years,” Fink said at Yahoo Finance’s All Market Summit event in New York.

He reflected on the darkest days of the financial crisis, which happened ten years ago, to illustrate that markets tend to recover even after things go horribly wrong.

“If you bought equities two days before Lehman Brothers collapsed, your portfolio is up…I think it’s up 130%,” he said.

The CEO of the world’s largest asset manager, famous for his belief in long-termism, gave his prediction not without concerns, chiefly that the U.S. could potentially lose its position of owning and controlling the world’s choice reserve currency should China benefit from the U.S.’s current unilateral agenda.

As for the short term, Fink said that despite trade concerns and political instability around the world, markets would likely continue going strong.

“I’m not really concerned about whether we’ll see a setback. The markets have rallied since 2009,” he said. “If you look at the markets today we see a huge increase in corporate earnings on the back of tax cuts and a rising economy.”

Larry Fink, CEO of BlackRock
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Larry Fink, CEO of BlackRock
Laurence 'Larry' Fink, chairman and chief executive officer of BlackRock Inc., speaks during a Bloomberg Television interview in New York, U.S., on Thursday, Dec. 17, 2015. Fink said falling energy prices and a stronger dollar are weighing on the U.S. economy, which will be lucky to see 2 percent growth in 2016. Photographer: Chris Goodney/Bloomberg via Getty Images
NEW YORK, NY - NOVEMBER 03: New York Times financial columnist Andrew Ross Sorkin (L) participates in a panel discussion with Blackrock CEO Larry Fink at the New York Times 2015 DealBook Conference at the Whitney Museum of American Art on November 3, 2015 in New York City. (Photo by Neilson Barnard/Getty Images for New York Times)
Laurence 'Larry' Fink, chief executive officer of BlackRock Inc., right, and Lori Fink arrive at a state dinner in honor of Chinese President Xi Jinping at the White House in Washington, D.C., U.S., on Friday, Sept. 25, 2015. The U.S. and China announced agreement on broad anti-hacking principles aimed at stopping the theft of corporate trade secrets though President Barack Obama pointedly said he has not ruled out invoking sanctions for violators. Photographer: Andrew Harrer/Bloomberg via Getty Images
CNBC EVENTS -- Pictured: Carl Icahn, Chairman, Icahn Enterprises, in heated debate with Larry Fink, Blackrock CEO, at the 2015 Delivering Alpha on July 15, 2015 -- (Photo by: Adam Jeffery/CNBC/NBCU Photo Bank via Getty Images)
Indra Nooyi, chief executive officer of PepsiCo Inc., center, Laurence 'Larry' Fink, chief executive officer of BlackRock Inc., left, and Lori Fink stand for a photograph at the Robin Hood Foundation's annual benefit in New York, U.S., on Tuesday, May 12, 2015. The foundation fights poverty in New York City by supporting more than 200 nonprofits with financial and technical assistance. Photographer: Amanda L. Gordon/Bloomberg via Getty Images
Laurence 'Larry' Fink, chief executive officer of BlackRock Inc., stands for a photograph during the Credit Suisse Global Megatrends Conference 2015 in Singapore, on Tuesday, April 21, 2015. China's leadership is making progress in economic reforms that should help moderate future boom and bust cycles, Fink said. Photographer: Sam Kang Li/Bloomberg via Getty Images
Left to right, Laurence 'Larry' Fink, chief executive of BlackRock Inc., Joaquim Levy, Brazil's finance minister, Haruhiko Kuroda, governor of the Bank of Japan (BOJ), Benoit Coeure, executive board member of the European Central Bank (ECB), Mark Carney, governor of the Bank of England, and Zhu Min, deputy managing director at the International Monetary Fund (IMF), participate in a session on the final day of the World Economic Forum (WEF) in Davos, Switzerland, on Saturday, Jan. 24, 2015. World leaders, influential executives, bankers and policy makers attend the 45th annual meeting of the World Economic Forum in Davos from Jan. 21-24. Photographer: Jason Alden/Bloomberg via Getty Images
Laurence 'Larry' Fink, chief executive officer of BlackRock Inc., reacts at the International Symposium of the Bank of France policy conference in Paris, France, on Friday, Nov. 7, 2014. Central banks cannot propel economic growth alone and governments must take steps too if expansions are to speed up, policy makers and investors said. Photographer: Kosuke Okahara/Bloomberg via Getty Images

Fink also observed that even as stock prices have gone up, valuations have become more attractive for investors.

“[The price/earnings multiple] is lower today than it was a year ago so the market place is now discounting some of those worries,” he said. “Some people may think they’re discounting enough, but with P/E down you could say the market is less expensive.”

Fink also pointed to a “decoupling between our markets and the rest of the world,” which has not experienced forces that have driven up U.S. markets, such as tax cuts and deregulation, and a decoupling between U.S. stocks.

“If you strip out some of the high flying tech stocks, many companies’ stocks are down.” he said. “The marketplace is uneven and not as strong as it feels.”

Ethan Wolff-Mann is a senior writer at Yahoo Finance.


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