BlackRock CEO Larry Fink cautioned that the market could experience another 20% decline, but he remains optimistic about the long-term outlook, describing the current downturn as a potential opportunity for savvy investors.
During an appearance at the Economic Club of New York on Monday, Fink expressed that although the market may see further drops, he sees it as an ideal time to buy. “I consider this more of a buying opportunity than a selling one, even though we might go lower in the short term,” he explained.
Fink also pointed out that inflationary pressures are more intense than many had anticipated, and that there is a growing belief among investors that the U.S. economy is already in a recession. Given these conditions, he does not expect the Federal Reserve to cut interest rates this year.
In a recent letter to shareholders, Fink warned about Bitcoin’s rising influence, suggesting that if more Americans begin viewing the cryptocurrency as a safer store of value, it could challenge the U.S. dollar’s dominance.
Markets, including cryptocurrencies, have been volatile since President Donald Trump announced new tariffs on imported goods. Bitcoin (BTC) is down 5% over the past week and 11% over the last month. Meanwhile, stocks have been hit harder, with the S&P 500 and Nasdaq dropping 13% and 15%, respectively.
