The equity market didn’t like rates at 3%…it will truly not like 4%

Jack Ablin, CIO at Cresset Wealth Advisors, interviewed on the Bloomberg Surveillance podcast on April 25, 2018. He discussed why he is somewhat conflicted about the outlook for equities at this juncture. Jack sees near-term upside but bonds will come back into favor as the ECB moves to end quantitative easing. Rates are inexorably headed to 4% and, in the context of potential GDP growth, which is much lower than it has been in the past, the interest rate appears to be historically high. The short-termism of corporate managers sparked by the pursuit of incentive returns has also pushed stock prices – one of the reasons why Cresset is looking at direct investments in private firms, which are not going public as quickly as they used to for this reason.

Link to podcast:

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Cresset is an independent, award-winning multi-family office and private investment firm with more than $45 billion in assets under management (as of 04/01/2024). Cresset serves the unique needs of entrepreneurs, CEO founders, wealth creators, executives, and partners, as well as high-net-worth and multi-generational families. Our goal is to deliver a new paradigm for wealth management, giving you time to pursue what matters to you most.

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From Chief Investment Officer, Jack Ablin.
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