We asked the CEO of the largest asset manager in the world if he thought that a recession is coming. Response from Larry Fink: We are there.
Most of the CEO Fink have spoken “say that we are probably in recession at the moment,” he said in an interview with the New York Economic club on Monday.
“A CEO specifically said that the air transport industry is a” proverbial bird in a coal mine – canary in the coal mine – and I was told that the Canari was already sick, “he said, adding that travel demand had decreased.
Last week, President Donald Trump introduced prices that were billed dollars in stock market value. Trump has not indicated that he will not reverse his plans despite the pain they cause from investors.
The head of asset management has raised his concerns about inflation if all the prices offered were put into force simultaneously. He said that it would make it difficult for the federal reserve to reduce interest rates, adding that there was “no chance” of multiple rate drops.
“I am much more worried than high inflation – it will increase rates.”
While Fink said that he expected the markets could still fall by an additional 20%, he suggested that the conditions were “more a purchase opportunity than a long -term sales opportunity because there are no systemic risks in the financial system.
In the longer term, Fink thinks that Trump will focus on a growth program, such as deregulation and tax reductions. “The market does not focus on these areas,” he said.
Fink said that the need to build infrastructure in the United States, especially for AI, is still a major investment theme that must be played.
“If you spend time now with the CEOs of the Hyperscalers, Nvidia and other players, they would say that the need is just as big today as it was 3 months ago, and I believe that some of the macro-tendencies are still in place,” he said.
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