BlackRock's Fink: We have a risk of a melt-up, not a meltdown in markets

Global growth picking up

There are signs suggesting global stockmarkets will see a "melt-up" rather than a melt-down as economic growth in the US and China appears to recover, according to BlackRock CEO Larry Fink.

Fink is optimistic that a "Goldilocks" scenario of stronger economic growth and more dovish central bank policies will draw institutional investors towards equity markets after months of staying on the sidelines. According to the FT, investment strategists have named the stock recovery so far this year the "flowless recovery", as equity funds have continued to suffer outflows despite the 14% rise of the FTSE All-World index year-to-date, the best start to the year the index has seen since 1998. The CEO said: "There's too much global pessimism. People are still very underinvested. Ther...