BlackRock Tops Q2 Earnings Forecast: Client Inflows of $100 Billion Lead the Gain

BlackRock, the world’s largest fund manager with US$6.5 trillion of assets under management – bigger in value than the third largest economy in the world

BlackRock Inc.  (BLK) reported  stronger-than-expected second quarter earnings June 17th, 2020 with  $100 billion of client inflows even with market volatility during the coronavirus pandemic. BlackRock, makes a historic move into corporate bond purchases, saw around $603 billion in fixed income inflows in the U.S. Federal Reserve. The stock has gained 14% this year.

  • BlackRock Inc. (BLK)  reports that Pandemic likely to heighten geopolitical fragmentation. The world looks increasingly fragmented, with the U.S. and China at opposite poles. Source: BlackRock
  • Investors should consider gaining exposure to both spheres, as global growth gravitates toward Asia.
  • Our CMAs reflect a very different future Expected government bond returns are now negative across developed markets, keeping us underweight on a strategic horizon. We see better opportunities in private markets and credit. Source: BlackRock

We have turned neutral on equities on a strategic horizon given the challenging backdrop for earnings and dividend payouts. We trim our modest overweight in EM and maintain our DM exposure at neutral. Tactically, we are also neutral on equities. We like the quality factor for its resilience and favor Europe among cyclical exposures. Source: BlackRock

  • Credit: We have moved to a strategic overweight on credit after being underweight for the past year. Sizeable spread widening compensates for the risks of defaults and downgrades, in our view. On a tactical horizon, extraordinary measures by central banks – including purchases of corporate debt – are supportive. Risks of a temporary liquidity crunch remains, but coupon income is crucial in a world starved for yield. Source: BlackRock

BlackRock is a global investment manager and our purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. Source Black Rock

Laurence D. Fink is Founder, Chairman and Chief Executive Officer of BlackRock, Inc. He and seven partners founded BlackRock in 1988, and under his leadership, the firm has grown into a global leader in investment and technology solutions to help investors build better financial futures. Today, BlackRock is trusted to manage more money than any other investment firm in the world. Mr. Fink has been named one of the “World’s Greatest Leaders” by Fortune, and Barron’s has named him one of the “World’s Best CEOs” for 14 consecutive years. Source: BlackRock

 

NYSE: BLK    CWEB Analysts see the stock as a potential  for long term growth and a great addition to one’s portfolio and upward of $800 by 2021


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