BlackRock CEO Larry Fink has warned investors that the market could experience another 20% drop, but he also believes the current downturn presents a favorable buying opportunity for long-term investors.
In an appearance at the Economic Club of New York on Monday, Fink noted that while the market could continue to slide, he sees the current pullback as a chance to invest. “This isn’t a time to panic and sell; I view it more as a buying opportunity,” Fink said. “But it’s also possible the market could go lower.”
Fink highlighted that inflationary pressures are stronger than expected, and he pointed out that many market participants already believe the U.S. economy is in a recession. As a result, he does not foresee the Federal Reserve reducing interest rates this year.
In a recent letter to shareholders, Fink raised concerns about Bitcoin’s potential to challenge the U.S. dollar, suggesting that if Americans start viewing the cryptocurrency as a safer investment, it could weaken confidence in the dollar.
The broader market has been in turmoil since President Donald Trump announced new tariffs on imports. Bitcoin (BTC) has seen a 5% decline over the past five days and an 11% drop over the last month. Stocks have suffered even more, with the S&P 500 and Nasdaq falling by 13% and 15%, respectively.
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