The CEO of the world’s largest money manager told CNBC on Wednesday that the U.S. stock market “deserves a premium.”
Fink said Asia and Europe currently represent a better value.
“The U.S. multiples are higher than any other part of the world,” Fink told “Squawk Box.” “We are seeing a surge in interest in emerging markets in Asia and [in] Europe. If you’re going to do an asset allocation over an intermediate cycle, that might be the better allocation today.”
At a time when the U.S. stock market is hitting record after record high, investors are hoping for a strong earnings season and tax reform out to keep the rally going and to mute any drag from an expected Federal Reserve interest rate hike in December, the third one this year.
Fink said if we see earnings this season “validate the high stock prices” then the stock market will continue to rally.
Fink appeared on CNBC after BlackRock reported better-than-expected quarterly earnings and revenue. For the third quarter, total assets under management at BlackRock soared year-over-year by 17 percent to nearly $6 trillion.
In the interview, Fink also said his greatest fear is an overly aggressive Fed: Too much tightening could put the bond market out of whack and hurt stocks.
BlackRock CEO Larry Fink says the US stock market 'deserves a premium'