What do you 'Fink' about economic democracy?

Another year, another set of highly anticipated financial wisdom pearls dropped by BlackRock CEO Larry Fink, in his 2025 annual letter to investors. 

To diverge for a minute, it’s proven almost impossible to accurately guess how many times I’ve seen the words ‘economic’ and ‘uncertainty’ together in media headlines so far this year. Headline fatigue is so real at the moment.

And even though Trump’s (somehow worse than expected?) Liberation Day tariffs were finally announced last night, there’s a new feeling bubbling that ‘uncertainty’ may not be disappearing from journalists’ choice of vocabulary any time soon. 

Fink, however, introduced his 27 pager – titled ‘The Democratization of Investing’ – with some much-needed reassurance about the economy. How many readers actually felt reassured after it isn’t something we’ll confidently comment on, but here’s how the letter started:

“I hear it from nearly every client, nearly every leader—nearly every person—I talk to: They’re more anxious about the economy than any time in recent memory. I understand why. But we have lived through moments like this before. And somehow, in the long run, we figure things out.”

He then went onto shake up the status quo a little – pledging to open up private markets to the masses and not just the wealthy few, and giving us a sort of reality check on capitalism.

All while avoiding any talk around ESG, climate or sustainability. Although that’s no surprise given the rock and the hard place BlackRock has found itself between over the last few years.

Laying out a vision for private markets

If you thought investing for ordinary folk will always be about stocks and bonds, think again. 

For long, the standard investment portfolio was built on a 60/40 mix of the above. But the success of this model has been tested by inflation, market volatility, and an array of trade and fiscal policy changes, to name a few. Fink believes this traditional model is outdated, and he’s advocating for a 50/30/20 approach for everyday investors. That includes diversifying into private assets like real estate, infrastructure and private credit. 

About time? Or wishful thinking?

For the argument of economic democracy, Fink takes a step back and analyses whether capitalism has worked for everyone. 

No. It hasn’t. And we all know that. While markets have generated immense wealth, access to financial opportunities has been seriously uneven. We need a more inclusive financial system – not one where only the ultra-rich continue to enjoy gains from economic growth.

The challenge for a new model, as Fink puts it, is that ‘the industry isn’t structured’ for a 50/30/20 world – but as the world’s largest asset manager, BlackRock is keen to solve this challenge, and Fink suggests that once we’re able to index private markets like with the S&P 500, they will become simple and accessible too. 

A new playbook

BlackRock has an AUM of $11.5 trillion – more than the combined government spending of the world’s 10 wealthiest countries. The firm has also been bulking up on private assets over the years, and is currently in the early stages of offering private assets to investors. 

Having played such a massive role in shaping investment strategies and influencing global finance, it’s no surprise that Fink’s letters are so widely read. And while this year’s letter covered a lot – from energy pragmatism to the concerning return of protectionist policies – it’s interesting to see where the focus lied. 

There’s a new playbook looming…