Soft economic landing achieved, says one of the most influential voices in the markets.
“I think we’ve had a soft landing,” Apollo Global Management (APO) CEO Marc Rowan told Yahoo Finance at the Milken Institute Global Conference on Monday. “Will it continue? I think so.” (Disclosure: Yahoo Finance is owned by Apollo Global Management.)
A soft landing for the economy is loosely defined as growth continuing — and recession averted — amid a series of interest rate hikes from the Federal Reserve.
Although markets have had mixed response to economic as data of late, with investors debating the outlook for interest rates, the raw numbers underscore Rowan's views.
The US economy expanded by 1.6% in the first quarter, the slowest pace in nearly two years — but it's still growing instead of contracting. The economy advanced by a 3.4% annualized rate in the final quarter of 2024.
GDP growth for 2023 tallied a 2.5% annualized pace, defying calls for a mild recession at the start of the year by several Wall Street firms.
"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," Rowan added.
Signs of a healthy economy showed up in Apollo's first quarter earnings.
Total assets under management (AUM) rose 12% year over year to $671 billion, benefiting from $40 billion in inflows.
The company saw a record quarterly debt origination volume of $40 billion.
Asset management fees in the asset management segment rose 13%, driven by demand for retirement services.
Apollo shares are up 22% year to date, outperforming the S&P 500's 9% gain.
Brian Sozzi is Yahoo Finance's Executive Editor. He is also the host of the "Opening Bid" podcast. Follow Sozzi on Twitter/X @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected]. Are you a CEO and want to come on Yahoo Finance Live? Email Brian Sozzi.
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