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BlackRock chieftan Larry Fink made headlines overnight by saying investors should forget about bonds and instead be backing up the truck and buying stocks. But it doesn't seem like his top lieutenants got the memo.
In an interview with Bloomberg, Fink, who founded BlackRock as a bond shop said, said investors should be 100% in stocks.
“I don't have a view that the world is going to fall apart, so you need to take on more risk,” Fink 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.”
But wait! Don't call your broker just yet! Landing in MarketBeat's email box this morning is a BlackRock press release hawking its line of iShares exchange traded funds focused on bonds.
Here's Peter Fisher, head of BlackRock’s Fixed Income Portfolio Management:
In this challenging environment with sustained levels of low yield, now more than ever investors are looking for new ways to generate income,” Fisher said. “We see a quiet revolution building in the asset class as more and more investors learn how to use fixed income ETFs to build portfolios that combine low risk with the potential for yield.
And from Matt Tucker, head of iShares Fixed Income Investment Strategy:
Passive fixed income ETFs are essential building blocks of a portfolio and make particular sense during this period of historically low yield.
So there you have it. All that's left is for BlackRock to suggest investors also load up on commodities and real estate.
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When was the last time any one from Wall St ‘bigwigs’ telling to SELL, NOW?
How can they CHURN the accounts to generate their commissions/bonuses if the cash parked at Treasuries/low yielding bonds?
Actually, I started laughing when I read the article, while feeling somewhat sad.
It’s no wonder small investors don’t have much faith in financial markets today. With clowns like these guys at Blackrock, it obvious that their ‘gurus’ have no idea of what will happen in the future.
100% Bonds AND 100% equities…. that way BlackRock will be 100% correct 50% of the time. It’s like the guys who guarantee sports gambling wins if you call to get their free tips.
meanwhile, goldman’s purchase of dwight is a lot like betting short term t bond prices will rise.
If Blackrock say buy, IMO, it’s because they are planning on selling.
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