Larry Fink, the chief executive officer of BlackRock Inc., sees markets trending higher spurred by deregulation and tax cuts in the U.S.

“People are under invested in equities,” Fink said on CNBC Friday. “We did more fiscal policy than other countries, other countries were reliant on just monetary policy.”

Fink said fiscal policy does more for an economy than monetary policy since the general population does not own bonds and stocks, especially in Europe and Asia.

The CEO said there was a lot of de-risking in the second quarter amid trade tensions around the world and more money moved into cash. But he advised investors not to be in cash now.

Fink sees a downward trend in China. He said the country must find ways to stimulate its domestic economy in the long-term.

“We’re hearing from CEOs that more and more supply chains are moving out of China,” Fink said. “People are are not waiting, companies are not waiting to see what the outcome is.”

China’s economy slowed in the second quarter amid the ongoing trade standoff with the U.S.

This article was provided by Bloomberg News.