BlackRock CEO Larry Fink has stated that historical data shows that staying invested during periods of market volatility yields far superior returns compared to attempting to time the market. In his annual chairman's letter to investors released on Monday, Fink wrote, "Over the long term, staying invested is far more important than trying to time the market perfectly." Fink also warned that the rapid advancement of artificial intelligence could exacerbate wealth inequality.

Larry Fink, CEO of BlackRock, urged investors to resist the temptation of market timing, pointing out that historical experience indicates that holding investments through turbulent market periods can result in significantly higher returns. "Over the long term, staying invested is far more important than trying to time the market perfectly," Fink wrote in his annual chairman's letter to investors released on Monday. "Some of the market's best-performing days often occur amidst the most unsettling news headlines." Using the past 20 years as an example, he noted that every dollar invested in the S&P 500 grew more than eightfold. However, if an investor missed just the ten best trading days during that period, the total return would be less than half of the original amount. The billionaire issued this warning as markets are increasingly swayed by sharp sentiment swings driven by geopolitics, inflation, and technological change. On Monday, stock markets rallied significantly after President Trump announced that the US and Iran had held talks and that strikes on Iranian energy infrastructure had been suspended. "The danger is that we focus too much on the noise and forget what truly matters," Fink wrote. "The forces behind today's news have been building for a long time. The old model of global capitalism is breaking down. Countries are making massive investments striving for self-sufficiency and control in energy, defense, and technology." BlackRock is the world's largest asset management company, with assets under management reaching $14 trillion by the end of 2025. Fink also cautioned that the rapid development of artificial intelligence could worsen wealth inequality, further enriching those who already hold assets while leaving others further behind. "The vast wealth created over past generations has largely flowed to those who already held financial assets. Today, artificial intelligence could replay this pattern on a much larger scale," he said. In the recent stock market rally, companies associated with artificial intelligence have contributed a significant share of the gains, with profits concentrated in a relatively small number of firms and their shareholders.