During the Milken Institute Global Conference, Apollo Global Management CEO Marc Rowan expressed his optimism about the economy’s future. He believes that the economy has achieved a soft landing, which refers to growth continuing despite interest rate hikes by the Federal Reserve. Rowan is confident that this trend will continue.
While some markets have shown mixed responses to recent economic data, the numbers support Rowan’s assessment. The U.S. economy grew by 1.6% in the first quarter, although it was the slowest pace in almost two years, it still indicates expansion. In the final quarter of 2024, the economy grew at a 3.4% annualized rate, and GDP growth for 2023 was at a 2.5% annualized pace, defying predictions of a mild recession at the beginning of the year.
Rowan highlighted that despite a significant increase in interest rates, the economy has remained stable, which is a key characteristic of a soft landing. Apollo’s first-quarter earnings reflect a healthy economy, with total assets under management increasing by 12% year over year to $671 billion and benefiting from $40 billion in inflows. The company also reported record quarterly debt origination volume and an increase in asset management fees.
Apollo Global Management’s shares are performing well, up 22% year to date and outperforming the S&P 500’s gain of 9%. Yahoo Finance provides readers with up-to-date information on economic news and indicators to stay informed about industry developments. For those interested in staying informed about deals and mergers or appearing on Yahoo Finance Live, Brian Sozzi can be contacted for tips or inquiries.
In conclusion, Marc Rowan expresses optimism about the future of the economy after Apollo Global Management reports healthy earnings for its first quarter while maintaining stability despite interest rate hikes by the Federal Reserve.