Wednesday, June 02, 2010

Fink Says U.S. Stocks to Rise - Someone better tell the insiders then...

Out of all the DOW 30 only have 2 show positive above zero line insider trading buying JNJ and VZ, every other stock is in the major selling mode or a few at the the flat no sell no buy, but this period follows a heavy period of selling which took place over the last few months.  Maybe Fink is a contrarian or his precious Aladdin system is seeing something the rest of the market isn't.

This huge volume of insider selling doesn't really give a lot of support to Fink's thinking.  His idea that companies are cash rich, well this is still a reflection of the looming threat of a credit crisis materializing at any point.  If we were close to normal companies would be buying their stock back, or buying new businesses, but it's not really happening.

BlackRock’s Fink Says U.S. Stocks to Rise as Companies Thrive

By Anthony Effinger and Sree Vidya Bhaktavatsalam

June 2 (Bloomberg) -- BlackRock Inc.’s Laurence D. Fink, who leads the world’s biggest asset-management firm, said the stock market is poised to rally because U.S. companies have built cash reserves and manufacturers are returning to health.

“We’re ready to really rock and roll as a country,” Fink said today in a meeting at the Oregon Investment Council, which manages retirement accounts for public employees and invests in BlackRock’s funds. The meeting was held in Tigard, Oregon.

Second-quarter profits at U.S. companies will be stronger than analysts expect, said Fink, chief executive officer of New York-based BlackRock, which manages $3.36 trillion in investments.

Fink was even more bullish on the U.S. a few weeks ago, before Europe’s credit crisis, he said.

“We’re very bearish on Europe,” he said to the group of two dozen employees and board members at the council.

For Related News and Information: Top fund-related news: TFUND

Last Updated: June 2, 2010 16:02 EDT


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