BlackRock’s Fink Sees Another 10% Market Drop Before Reboundby
Says stocks to head higher in second half of the year
BlackRock fourth-quarter earnings rise 5.9% amid inflows
BlackRock Inc.’s Laurence D. Fink said stock markets will probably decline another 10 percent before turning around and ending the year higher.
There’s “not enough blood” in the markets yet for a quick rebound, Fink, the chief executive officer of New York-based BlackRock, said Friday in an interview on CNBC, after the world’s largest money manager reported a 5.9 percent increase in fourth-quarter earnings. He said oil would test $24 a barrel.
Stocks fell around the world and bonds jumped as a slump in crude oil sent markets reeling after Chinese shares tumbled into a bear market. BlackRock, which benefited last quarter from a rebound in stock markets and $53.8 billion in long-term inflows, is telling clients to add to positions, Fink said.
BlackRock’s net income increased last quarter to $861 million, or $5.11 a share, from $813 million, or $4.77 a share, a year earlier, the company said Friday. Adjusted earnings of $4.75 a share fell short of the $4.80 average estimate of 19 analysts surveyed by Bloomberg, a miss Fink attributed to one-time expenses.