Tags: Fink | 28000 | Dow | stocks

BlackRock's Fink: Dow Will Hit 28,000 in Next 5 or 6 Years

Image: BlackRock's Fink: Dow Will Hit 28,000 in Next 5 or 6 Years People walk beneath a Times Square news ticker on May 3.

Wednesday, 29 May 2013 02:17 PM

By Dan Weil

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Stocks are hitting record highs on a seemingly daily basis, and BlackRock CEO Larry Fink thinks the bull market has another five or six years to go.

Investors could experience annual returns of 8 to 10 percent during that period, he tells CNBC. This could put the Dow Jones industrial Average above 28,000 in 2019.

"Sounds pretty good, doesn't it?" he quips.

Editor's Note:
 
Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

That would represent an 83 percent jump from the 15,314 level prevailing Wednesday afternoon. The Dow reached an all-time peak of 15,542 a week ago.

Given corporate earnings strength, stocks offer attractive values, Fink says.

"The S&P [500] is around 15½, 16 times earnings," he explains. "There's no question in my mind that equities remain ... fairly cheap."

Fink also addressed Federal Reserve policy. Fed Chairman Ben Bernanke and some other Fed policymakers have indicated that the central bank may start to taper its quantitative easing within the next few months.

"I believe the fixed-income market is going to respond with higher rates, but not very high rates," Fink predicted. "That's still supporting the equity market."

Many other market participants think the stock party can keep going too.

"I see a lot of tailwinds for the rally to continue," Jerry Harris, chief investment officer at Sterne Agee, told The Wall Street Journal. "Gas prices are way down from where they were a few months ago, and house prices are way up."

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

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