BlackRock CEO: High inflation is the world's “biggest risk”, and you can always make a lot of money by doing the opposite of Davos

Gold Finance reports that BlackRock CEO Larry Fink said investors are too quick to conclude that high inflation is over, raising the likelihood that bond yields will rise in line with higher prices in the future. “The biggest risk facing the world today is that the world thinks the high point of inflation is over,” Fink told Bloomberg on the sidelines of the World Economic Forum in Davos, Switzerland, on Wednesday, adding that his view is at odds with that expressed by market forces. “I really think we're going to face high inflation.” When it comes to AI investments, Fink said building data centers requires a lot of money from the private sector. BlackRock is teaming up with Microsoft and others to raise a $30 billion fund, and Fink said the private market needs to pay particular attention to how data centers are powered. “In the short term, let's be clear, it's going to be powered primarily by natural gas, and in the U.S. it's natural gas,” Fink said, adding that the power demand should spark discussions about the future role of nuclear energy.