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BlackRock's Fink Warns of Dark Days Ahead for U.S. Economy
In an interview with Bloomberg Television on Thursday, BlackRock CEO Larry Fink said that he’s seeing “some warning signs that are getting darker” for the U.S. economy as uncertainty continues to pervade the markets.
In the interview, Fink points to the middling growth of the U.S. economy and the continued uncertainty about whether President Trump will be able to expedite key reforms. Fink also “mentioned a pullback in car sales and a slowdown in merger and acquisition activity as indications that uncertainty is rising.”
Fink also pointed out to Bloomberg that the U.S. is the slowest economy among the G-7 nations.
The stock market needs validation that U.S. corporate earnings will stay strong and that the policies of President Donald Trump regarding taxes, regulation and infrastructure will advance in Congress in order to move higher, Fink said.
“If we don’t have earnings validated in these higher P/Es we could adjust downward 5 or 10 percent from here,” Fink said. “If the administration does succeed on some of these items then the market will then reassert itself going higher.”
Despite the dark warning signs for the U.S. economy, Fink tells Bloomberg that he remains “bullish” for investors.
Photo: World Economic Forum