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.
Read more at : https://www.investing.com/news/stock-market-news/blackrock-cofounder-sees-us-stock-rally-continuing-beyond-2019-1629521
