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Stocks will accumulate in 2021, but not as much as last year

Larry Fink of BlackRock told CNBC on Thursday that he believed the stock market had additional opportunities for higher growth. However, the chairman and CEO of the largest asset manager warned that the rally may not be as stable as in the second half of 2020.

“I think we will continue to see the market strong in 2021, probably not as strong as we saw in the fourth quarter or third quarter of last year,” Fink told Squawk Box.

The S&P 500 rose more than 20 percent from July 1

to December 31 as part of a massive stock recovery from a sell-off caused by a coronavirus pandemic in February and March.

One factor that should provide a headwind for the market is the “record” amount of money that investors have aside, Fink said.

“We are constantly monitoring investors around the world who are not invested and not over-invested in long-term assets, and the best source of long-term assets are stocks and many categories of assets in the private area,” he said.

The presence of low interest rates – and the likelihood of an adjustment monetary policy in place for some time – will continue to attract investors to the market, Fink said.

Fink said he expects the second half of 2021 to be stronger for the market than the first half due to the widespread use of Covid-19 vaccines, which allows for the resumption of greater economic activity. “This will be a powerful component for growth ahead,” he added.

Shares of BlackRock were up more than 1% in pre-trading on Thursday after the New York-based company reported better-than-expected earnings and earnings in the fourth quarter.

BlackRock’s assets under management rose to a record $ 8.68 trillion at the end of the quarter. That’s more than $ 7.43 trillion for the same period last year.

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