Larry Fink, the Chief Executive Officer (CEO) of BlackRock, the world’s largest asset management firm, has issued a sobering message to investors, emphasizing that market volatility—where bubbles naturally inflate and burst—is a normal mechanism. He asserts that the long-term determinant of whether one is a winner or a loser is “the ability to consistently survive in the market.”
🧠 Overcoming Fear and Greed
Fink highlighted the repetitive mistake made by many investors: “being fearful when the market is down and greedy when the market is up.” This behavior causes investors to miss true opportunities, which often emerge during the market’s most turbulent periods.
During Turmoil: This is when the general public retreats, while long-term winners use the timing for accumulation.
During Boom Periods: This is when the public chases prices driven by greed, leading to risk-adjusted returns that are often poor.
He added that all financial markets, including stocks, bonds, or new assets like the Bitcoin ETF that BlackRock has become involved with, have their own inherent cycles. The most crucial element is not predicting the peaks or troughs, but rather staying in the game throughout every cycle to realize long-term returns.
🛑 The Costly Mistake of Retreating
This message serves as another powerful signal from a global financial leader, cautioning investors that “leaving the market due to fear of volatility might be the most expensive mistake one can make,” underscoring the long-term investment philosophy consistently championed by BlackRock.
