BlackRock’s Rieder Sees ‘Explosive’ Rally as Cash Gets Unlocked

BlackRock Inc.’s Rick Rieder said the surge in US equities following President Donald Trump’s Iran peace deal announcement reflects investors starting to redeploy the roughly $8 trillion to $9 trillion held in money market funds.

“There is so much cash that’s sitting on the sidelines,” said Rieder, BlackRock’s global fixed income chief investment officer. SpaceX’s initial public offering last week had already forced investors to make room in portfolios, creating momentum that accelerated after the Iran agreement removed a key geopolitical risk, he added.

“Once that has happened, all of a sudden it unlocks this cash, particularly when you ...