BlackRock CEO Larry Fink said he remains optimistic on markets over the next 12 months, arguing that a technology-driven shift is helping improve corporate profit margins. He pointed to BlackRock’s own performance over the past year, saying the firm’s margin rose by 260 basis points while it added $1 trillion in assets without increasing headcount.
Fink also said current market leverage is below the levels seen in 2008 and 2009, and that implied leverage does not appear elevated when measured against the present size of capital markets. At the same time, he cautioned that concentration risk may still exist in certain assets, financial products, or international markets.
On digital assets, Fink said he had previously been concerned about leverage in Bitcoin and the broader crypto market, where too many leveraged participants had once been involved. In his view, after that leverage was cleared out, Bitcoin and the crypto market have become more stable at current levels.
BlackRock CEO Larry Fink said he is optimistic about markets over the next 12 months and expects a technology revolution to lift profit margins at more companies.
Fink said BlackRock’s margin increased by 260 basis points over the past 12 months, while the firm added $1 trillion in assets without increasing its employee count.
On leverage, he said current market leverage is below the levels seen in 2008 and 2009, and that implied leverage is not high when viewed against the current size of capital markets. He added that concentration risk may still remain in some assets, financial products, or international markets.
Fink also said he had long been concerned about leverage in Bitcoin and the crypto market, where there had previously been too many leveraged participants. He said Bitcoin and the broader crypto market are more stable at current levels after that leverage was cleared out.
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