Badly framed

Fink says ‘most of us are not good enough at market timing’ so ‘always be 100% in equities’

Mr, Head of Blackrock would still have his grocer invest in wholesale deliveries.   He really means the profits invested in equities, after all necessary expenses, including cash, and be debt free. Further restriction, he implies, invested relative to the central bank dollars.

Liquid equities mean from the stock market, but not necessarily any index or EFT as they require choice. So, what he really means is that the liquid stock market trades 'time to completion' better than central bankers, true. A professional equity investor beats the central banker because the banker requires time insurance, adding to tradebook error.


Consider the asynchronous S&L, it will set an ad hoc interest charge when loans and deposits in advance are out of spec. Thus, time to completion can be derived by the asynchronous S&L using margin loans on stocks. In this case there are always moments when some traders are optimum by increasing deposits relative to loans. Mr Blackrock knows this truth about marginal lending, they make do-re-me doing it.

The sandbox can automate the marginal lending function for any sufficiently liquid stock. Traders in the stock then get an estimate of matching error, the stock VIX, by watching the automated banker but error process. Works fine, eliminates the need for BlackRock.