New York
BlackRock CEO Larry Fink said that he believes emerging markets are on a downward slide as he sees strong macro trends weighing on the asset class. “I am pretty bearish on the emerging world,” Fink said at an online event hosted by the Institute of International Finance.
He said the Covid-19 pandemic is taxing emerging economies and their health systems more than developed countries, deglobalization is hurting the commodity-dependent countries and the group is more sensitive to effects of climate change.
“When we talk about climate change, and we think that’s a big issue and a reallocation of capital,” Fink said, “part of that reallocation of capital is movement out of the emerging world.” Outside these global macro trends, a lack of trust in EM governments is further hurting the asset class, the head of BlackRock said.
“We’re seeing a flip-flop of governments.
