3:37 p.m. ET, March 9, 2020
BlackRock says don't panic. This isn't 2008, part 2
From CNN Business' Paul R. La Monica
Monday's
stock market plunge is bringing back painful memories of 2008 -- and leading to fears that the coronavirus outbreak will cause a global recession and bear market. But
BlackRock (
BLK), the Wall Street firm run by Larry Fink that just so happens to be the largest asset manager in the world, is urging investors to take a deep breath and relax.
"We do not think this is 2008," said analysts with the BlackRock Investment Institute, in a
special report Monday.
"The virus shock’s impact will likely be large and sharp, but we believe investors should be level-headed, take a longterm perspective and stay invested. The economy is on more solid footing and, importantly, the financial system is much more robust than it was going into the crisis of 2008," the BlackRock analysts added.
The key to stopping the market selloff will be a "preemptive and coordinated policy response," said the influential BlackRock, which has $7.4 trillion assets under management including $2.2 trillion in popular iShares ETFs.
The
Federal Reserve already cut interest rates by a half-point in an emergency move last week and traders are betting on an even bigger cut --
perhaps all the way back to 0% -- at the Fed's regularly scheduled meeting on March 18. But BlackRock also said
more fiscal stimulus from lawmakers and the White House is needed.