Blackrock billionaire Larry Fink said investors should be at least 80% in equities — here are a few trends that have him ‘more optimistic than ever’

23/05/2024

Larry Fink: 'I'm more optimistic than ever’

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There's plenty of doom and gloom about the global economy right now. But Blackrock's CEO Larry Fink seems to have spotted a silver lining amid the dark clouds.

"I'm more optimistic than ever," he told CNBC's Jim Cramer in a recent interview.

He advocated for investors to embrace equities, suggesting allocations of at least 80% and perhaps even 100% for those with the risk appetite to handle it. With $9 trillion in assets under management and one of the most popular index funds in its arsenal, Blackrock has unique insight into the state of the economy. This is why optimism from the world's biggest asset manager is noteworthy.

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However, Fink's optimism isn't just rooted in market observation; it's also informed by a deeper understanding of the financial challenges faced by many nearing retirement and the importance of investing with retirement in mind. In his latest annual letter to shareholders, Fink recalled the experience of assessing his parents' finances after his mother's passing.

Despite acknowledging the headwinds, including geopolitical tensions in the Middle East and sticky inflation, Fink remains optimistic about long-term trends that overlap to create unique opportunities for investors.

Here are some of those overlapping trends he loves right now.

Hard assets

"I'm a hopeful person," Fink said during the Cramer interview. "I believe in 10 or 20 years humanity [will be] in a better position than it is today. With that view, I want to own hard assets today. I want to own equities. I want to be part of this economy."

If you're looking to follow Fink's advice and devote as much of your portfolio to equities as possible, you have a couple useful options that can help you do that.

Looking to dip your toe into equities? With Robinhood allows you to buy fractional shares of an investment and doesn't charge a commission to trade stocks.

With features like automatic investing, in-app investing guides and 24/7 access to their customer service team, Robinhood makes it easy for beginner investors to diversify their portfolio.

For more experienced investors with larger portfolios, Interactive Brokers is a trading platform worth considering. With highly competitive commissions and fees, Interactive Brokers provides access to a diverse range of investment options across major asset classes, including U.S.-Based stocks, ETFs, and mutual funds.

Interactive Brokers offers advanced trading tools and research resources, making it a comprehensive choice for seasoned investors looking for an easy way optimize their investing strategies.

Alternative assets

One of the appealing things about investing in hard assets is that they have been shown to resist tough economic times, especially precious metals like gold and silver. And a Gold IRA — which combines the tax advantages of an individual retirement account with the inflation-hedging potential of gold — could be the right choice to grow your retirement nest egg.

By opening a Gold IRA with Rosland Capital, they can help you add more cushion to your retirement fund. Opting for a Gold IRA allows you to diversify your portfolio and stabilize your finances.

The Blackrock CEO has previously pointed out the risk to commercial real estate from rising levels of remote work. However, there is still plenty of potential upside to investing in necessity-based commercial real estate, which you can invest in with First National Realty Partners (FNRP).

FNRP’s team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods and they act as they deal leader, providing insights into the best properties both on and off-market.

With FNRP, accredited investors can invest in institutional-quality, grocery-anchored real estate with historically strong return potential and passively collect distribution income.

Another way to earn from the real estate market is to invest in fractional shares of vacation and rental properties through Arrived. Backed by world-class investors like Jeff Bezos, Arrived lets you explore properties for their appreciation and income-earning potential.

To get started, you can browse their curated selection of properties, choose how many shares you'd like to purchase and start investing with as little as $100.

AI and robotics

Fink believes rising trade tensions are a headwind for automation. "We're going to see an acceleration of fragmentation of the supply chains because of geopolitical issues," he says. As we advance AI and robotics, there is such an enormous opportunity for nearshoring."

Nearshoring is a term used to describe the relocation of factories and manufacturing hubs to countries closer to consumers. According to a survey by ABB, about 70% of business leaders across the U.S. and Europe said they were actively considering nearshoring or reshoring. And 40% said automation and robotics were part of the plan.

If you're looking to seize upon this transformative wave of technology, you can start investing in up-and-coming tech companies before they go public with Fundrise. In addition to providing access to real estate and private credit, Fundrise offers access to private tech companies for everyday investors which can allow you to tap into promising, high-growth tech enterprises in their prime.

To get started, download the Fundrise app and register. From there, you can explore their curated portfolio of leading private technology companies, offering you a unique chance to be at the forefront of innovation.