Federal Reserve Chairman Jerome Powell isn't the only market player who may be guilty of a little capitulation.
Even though the Fed's about-face on rates began in late December, stocks were just beginning to rebound from huge fourth-quarter losses, and that was still fresh in the minds of investors, said Mike Loewengart, chief investment officer at E-Trade Capital. "We have a risk of a melt-up, not a meltdown here," Larry Fink, CEO of the world's biggest asset manager, BlackRock, told CNBC on Tuesday."Despite where the markets are in equities, we have not seen money being put to work," Fink said."Many people thought we were going to be in a period of rising rates. We were not, and we saw huge underinvestment and people had to rush into fixed income," he said."We have not seen that in equities yet.
J.P. Morgan CEO Jamie Dimon said last week on the Wall Street bank's earnings call that the U.S. economic expansion "could go on for years." The E-Trade official also noted that these millionaire investors — who likely have many years of experience through market ups and downs — did not indicate they had major changes planned for their overall portfolio allocations, even as they become more bullish on stocks. Forty-nine percent said they plan to make no changes this quarter.
Thank you for chasing at 2900.
It's frickin' too bad for those of us trying to save money safely. It sucks.
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