BlackRock backs US equities

BlackRock says US equities look more attractive because a weak US dollar helps company profits and many firms have surplus cash to invest in growth. CEO Laurence Fink also highlighted a preference for dividend stocks and argued that if you believe in a positive long-cycle outlook, being invested in equities makes sense compared with owning Treasuries just out of fear.

Laurence Fink said, “We love equities, we love dividend stocks,” noting that dividend-paying shares can be an important part of long-term investment returns. He contrasted this with owning Treasuries, which he called something you do if you’re worried about the world and the future.

Fink said he would buy Treasuries if yields rose above 4%—he’s currently a “big buyer” of the US dollar but would move into Treasuries at that higher yield level.

Fink gave an example: if equity markets deliver about 4% growth plus a 3.5% dividend, that’s roughly a 7.5% return—approaching the 7.5–8% range he cited for global liabilities. He argued you can’t match those liability levels by earning 3.5% in 10‑year Treasuries.

According to the article, Pimco’s US$241 billion total return fund had a negative allocation to government and related debt—minus 4% of its assets at the end of April, up from minus 3% in March—indicating an increasing bet against US government debt.

Fink said BlackRock has “huge plans” to increase its presence in Asia, calling the region a key growth element for the next three to four years. He noted the firm has exported dollar‑based assets to Asia but expects its future to include more management of local‑currency products.

The article reports Fink’s view that as Beijing curbs lending, more Chinese companies will turn to the corporate bond market for funding—and BlackRock expects to benefit as those markets grow.

BlackRock was co‑founded by Laurence Fink in 1988 and grew through acquisitions. The firm also advised the Federal Reserve on illiquid debt portfolios at the height of the financial crisis.