‘We have a risk of a melt-up, not a meltdown here.’
—Larry Fink, CEO, BlackRock Inc.
BlackRock Inc. BLK, +2.75% Chief Exeuctive Larry Fink says that with stocks knocking on the door of records, a surge to the upside appears more likely than a market collapse. That is because so many investors still have lots of cash to put to work, the head of the world’s largest asset manager told CNBC in a Tuesday interview.Yesterday:
“Despite where the markets are in equities, we have not seen money being put to work,” Fink said. “We have record amounts of money in cash.”
A meltup is often defined as a sharp and unexpected rise in the price of an asset class, driven largely by a stampede of investors who are more concerned about missing out on a big up move than by improving market fundamentals. Melt-ups are often followed by sharp market setbacks.
After a steep fourth-quarter selloff that pushed the S&P 500 SPX, +0.10% and the Dow Jones Industrial Average DJIA, +0.29% into corrections but stopped just short of a bear market — defined as a 20% drop from a recent peak — stocks have roared back. For the year to date, the S&P 500 is up 15.9% and stands less than 1% below its all-time closing high of 2,930.75 set Sept. 20.
Data from Lipper last week showed that U.S. equity funds saw $4.3 billion in inflows through the week ended April 10, but that followed a $19.7 billion outflow from the end of last year through April 3....MORE
Equities: We're Starting to See "Aggressive Projections for the Dow"
S&P 500 2,908.51+2.93 (+0.10%)
DJIA 26,466.76+81.99 (+0.31%)
