The economic headwinds currently roiling the U.S. economy are fixable in the long-run, meaning investors can afford to relax a bit, BlackRock CEO Larry Fink told CNBC’s Jim Cramer on Wednesday.
“A really famous person called me up, panicking, ‘what should I do, I’ve got to get out, I can’t stand it, I can’t stand it.’ And I said, ‘go on vacation,'” Fink said in an interview on “Mad Money.”
“If you really can’t stand it, then sell it. … But the reality is, we’ve seen this. Inflation is going to be fixed over time,” he added, pointing to falling commodity prices as a sign of deflation.
All the major averages gained on Wednesday, buoyed by a rally in tech stocks. The market’s gains follow its recovery on Tuesday, when investors betting that the market is bottoming picked up riskier assets like tech stocks. These stocks have seen massive sell-offs this year after the Federal Reserve started raising interest rates to tamp down inflation.
When Cramer asked whether persistent inflation, the Fed’s rate increases and the Russia-Ukraine war is a threat to the overall health of the U.S. economy, Fink said that the headwinds are “business as usual” for long-term investors.
“When I started my career, when you started your career, we had much higher inflation, much more problems in our country. We’re going to get through this,” he said.
“Is there risk of a recession? Sure, but even if we’re in one, it’s going to be quite mild. The financial foundation of America is as strong today as ever,” he added.
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