Marc Rowan, CEO of Apollo Global Management (NYSE:APO), asserted that the economy has successfully achieved a soft landing, offering his insights as one of the most influential figures in the financial markets.
Speaking at the Milken Institute Global Conference, Rowan told Yahoo Finance, “I think we’ve had a soft landing. Will it continue? I think so.” (Disclosure: Yahoo Finance is owned by Apollo Global Management.)
A soft landing in the economy refers to sustained growth and the avoidance of recession despite a series of interest rate hikes by the Federal Reserve. While recent economic data has sparked debate among investors regarding the future trajectory of interest rates, Rowan’s assessment aligns with underlying indicators.
In the first quarter, the US economy expanded by 1.6%, marking its slowest growth rate in nearly two years. However, the economy maintained growth rather than contracting. Notably, the economy achieved a 3.4% annualized growth rate in the final quarter of 2024.
The GDP growth for 2023 surpassed expectations, registering a 2.5% annualized pace despite predictions of a mild recession at the beginning of the year by various Wall Street firms.
Rowan emphasized, “When rates have gone up 400 basis points and the wheels haven’t come off the bus, as they say, I think that’s the definition of a soft landing.”
Apollo’s first-quarter earnings underscored signs of a robust economy. Total assets under management surged by 12% year-over-year to reach $671 billion, buoyed by $40 billion in inflows. The company also recorded a record quarterly debt origination volume of $40 billion.
Asset management fees within the asset management segment increased by 13%, driven by strong demand for retirement services.
Apollo’s stock has outperformed the market, rallying by 22% year-to-date compared to the S&P 500’s 9% gain.
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