CNBC'S Maria Bartiromo SITS DOWN WITH BLACKROCK CHAIRMAN & CEO LARRY FINK TODAY ON CNBC'S "CLOSING BELL WITH Maria Bartiromo". The transcript from the interview follows:
BARTIROMO: HE RUNS THE WORLD'S LARGEST, IN TERMS OF ASSETS MANAGER, AT MORE THAN $3.5 TRILLION. HE CURRENTLY OVERSEES MORE MONEY THAN THE FEDERAL RESERVE. JOINING ME NOW IN A CNBC EXCLUSIVE IS BLACKROCK CHAIRMAN & CEO LARRY FINK. GOOD TO SEE YOU.
FINK: HI, MARIA. HOW ARE YOU?
BARTIROMO: GOOD. THANK YOU FOR HAVING US HERE AT YOUR TRADING DESK.
FINK: I DIDN'T HAVE TO COMMUTE.
BARTIROMO: EXACTLY. YOU HAVE BEEN ON THIS CAMPAIGN FOR A WHILE TO TRY TO EXPLAIN TO PEOPLE THAT YOU'RE LOSING MONEY WHEN YOU HAVE MONEY IN FIXED INCOME. TAKE MONEY OUT OF THERE AND PUT IT INTO EQUITIES. YET, WE'RE SEEING OUTFLOWS. WHAT'S GOING ON?
FINK: IN EQUITIES
BARTIROMO: YEAH. WHAT'S GOING ON?
FINK: I SHOULD BE CLEAR, YOU'RE NOT LOSING MONEY IF YOU'RE IN FIXED INCOME THAT HAS HIGHER YIELDS. IF YOU'RE SITTING IN A FIVE YEAR TREASURE EARNING 60 BASIS POINTS AFTER INFLATION AND YOU'RE LOSING MONEY. SO WHAT WE BELIEVE PEOPLE HAVE TO START FOCUSING ON, AND I BELIEVE IT'S A CRISIS, THAT IF YOU DON'T START PUTTING MONEY AWAY THAT'S EARNING MORE THAN 60 BASIS POINTS BUT EARNING CLOSER TO 5, 6%, YOU'RE GOING TO HAVE A HARD TIME MEETING YOUR NEEDS WHEN YOU RETIRE. SO IF YOU'RE A 35-YEAR-OLD PERSON WITH A DESIRE TO RETIRE AT 65, YOU ONLY HAVE 30 YEARS TO BUILD THAT NEST EGG. AND TODAY WITH LONGEVITY BECOMING A BIGGER ISSUE AND LIVING BEYOND 90, YOU NEED TO BUILD EVEN A BIGGER NEST EGG THAN PEOPLE ARE SUGGESTING. SO WE'RE JUST TELLING PEOPLE THAT YOU HAVE TO THINK ABOUT KEEPING MONEY IN BONDS OR IN CASH RIGHT NOW, IT'S COSTING YOU A HUGE AMOUNT OF MONEY. PEOPLE TALK ABOUT, LIKE, FINANCIAL REPRESSION. YOU HEAR THOSE WORDS. WELL, YOU ARE REPRESSING SAVERS. SO WHAT WE WERE TRYING TO ALERT PEOPLE IS YOU DON'T HAVE TIME TO WAIT. YOU HAVE TO START FOCUSING ON INVESTING FOR THE LONG TERM. AND THAT'S WHAT WE ARE TRYING TO HAVE, THIS IDEA GERMINATE AND HAVE PEOPLE START ACTING. YOU NEED TO BE IN THE MARKET. YOU NEED TO HAVE INVESTMENTS THAT CAN SURVIVE OVER MANY YEARS. FROM MY VIEW, AS I SAID TO YOU LAST YEAR IN OCTOBER ON YOUR SHOW, I WOULD BE 100% IN EQUITIES. OBVIOUSLY IF YOU WERE 100% EQUITIES, YOU WOULD HAVE MADE 23%. NOW, MOST PEOPLE CAN'T DO THAT, BUT WHAT I'M TRYING TO INSPIRE PEOPLE TO START FOCUSING ON THE NEED FOR RETIREMENT, THE NEED FOR HIGHER YIELDING RETURNS.
BARTIROMO: I WANT TO FIND OUT SOME SPECIFIC STRATEGIES IN TERMS OF DOING THAT. FIRST, LET'S TALK ABOUT THE ECONOMIC BACKDROP BECAUSE HERE WE HAVE THIS MARKET RALLYING, YET THE FUNDAMENTALS SEEM TO BE QUITE ANEMIC. WHAT'S YOUR TAKE ON WHERE WE ARE NOW IN TERMS OF THE ECONOMY?
FINK: WE'RE ABOUT A YEAR AWAY FROM THE U.S. ECONOMY SHORT-TERM PROBLEMS RELATED TO THE FISCAL CLIFF. WHICH WE'RE GOING TO TALK ABOUT. THE FUNDAMENTALS FOR THE U.S. ECONOMY ARE QUITE STRONG. WE'RE ABOUT A YEAR AWAY FROM A FULL REBOUND IN AMERICAN HOUSING. WE STARTED OFF IN 2007 WITH 8 MILLION UNSOLD HO...
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