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BlackRock co-founder sees U.S. stock rally continuing beyond 2019

By Tomo Uetake

TOKYO (Reuters) – BlackRock Inc (N:BLK) President Rob Kapito said on Monday he expects the U.S. stock rally to continue beyond next year, as there are fewer shares available for investors because of increased company buy-backs and dwindling public offerings.

“Recently, given the economic backdrop and tax reform, companies have maintained a lot of cash on their balance sheets. And they have used that cash to buy back their stocks and raise dividends,” Kapito told reporters in Tokyo.

The co-founder of the world’s largest asset manager, with $6.3 trillion in assets under management, added that the drying up of the IPO market is another factor contributing to a shortage of shares.

Fewer shares to buy “drives prices high’, he said.

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