BlackRock analyst Larry Fink expressed his views on the potential of stocks in 2021 with most countries starting to impose a 'lockdown' to curb the spread of the Covid-19 epidemic.
The CEO of the world's largest asset management firm argues that the stock market still has room to continue to soar. However, he expects the price hike to be not as high as it was in 2020.
Based on the data, the S&P 500 stock exchange has increased by more than 20% over the period from 1 July to 31 December following the economic recovery that occurred in the third and fourth quarters of last year.
In addition, he noted that stock trends show investors tend not to invest too much in assets for the long term. He added that they prefer to invest in short-term assets.
The surge trend in 2020 will continue in 2021 which is driven by low interest rate factors and the announcement of monetary policy from the government.
Fink finally argues that he expects the second quarter of 2021 to be more positive for the market than the first quarter due to the wider distribution of the Covid-19 vaccine.
