Speaking at the 2025 RBC Capital Markets Global Financial Institutions Conference on Tuesday, BlackRock (NYSE:BLK) Chairman and CEO Larry Fink addressed markets and opportunities amid the global turmoil sparked by President Trump's tariffs. Fink stressed that the world would make it through this period as companies and governments re-calibrate. While he sees near-term volatility, he sees mid- and long-term opportunities to own stocks.
“The world is fine,” Fink said at the event. “There is a lot of noise, but the world and the U.S. will get by."
He added that if there is a big dip, investors should say, “Fine, it’s time to buy.”
Despite the tariff uncertainty, he sees the U.S. set up for a big economic boom, and the outcome from the tariffs will most likely be net/net positive for the U.S. However, for right now, there is a reordering of global trade. Fink said that for the next six months, there will be a lot of volatility, "but people will find a way to re-navigate". 2025 will be a “rocky year,” but after that, people will be happy they are long stocks.
Meanwhile, he thinks the market is getting treasuries wrong at the moment. He sees a lot of inflation in the short run and said potential labor shortages in agriculture due to illegal immigrant deportations could drive prices higher.
Fink said that after a strong fourth quarter, consumers and companies are now pausing. While this creates short-term disruptions, over the next two to three years, he thinks technology advancements will be deflationary. An asymmetric trade opportunity he sees is that potential new trade agreements with Mexico and Canada, and even China, could be favorable.
On Europe, he highlights that the continent has been in a bad spot for 10-12 years given heavy regulation. However, lately, there has been positive movement, Fink said. He highlights much larger defense budgets and leaders taking more responsibility and announcing growth initiatives. He said he is “encouraged” about Europe.
On AI, he sees the technology advancements as deflationary over time. "It is very clear to me that the U.S. technological advances are what is going to be driving higher stock prices over the next 5 years and will be continuing to be driving opportunities for investors,” Fink said. So, AI could be "very deflationary."
