Billionaire investor David Rubinstein predicts persistent inflation and warns that recession fears could freeze markets. Here are his 6 best quotes from the new interview.

  • David Rubenstein predicted stubborn inflation and warned that recession fears could freeze markets.
  • Billionaire Carlyle has predicted a rebound in deals after a low-key year in 2022.
  • Rubenstein touted private equity industry expertise and global growth opportunities.

David Rubinstein has questioned a full reset of inflation, highlighted a key aspect of recession worries, and predicted a rebound in deals this year.

The billionaire investor and co-founder of Carlyle also sees higher returns in private markets than public markets and highlights global growth opportunities for private equity. He weighed in during a recent edition of the Goldman Sachs Exchanges podcast.

Here are 6 of Rubinstein’s best quotes, lightly edited for more length and clarity:

1. “People are probably willing to accept 3% as acceptable given where we’ve been lately. I suspect that 3% will probably be the norm for some time. to almost certainly get very high unemployment.” (He discussed the outlook for inflation, which jumped to over 9% last summer and remained above 6% in December, well above the Federal Reserve’s 2% target).

2. “When you don’t know if you’re going into a recession or not, it tends to freeze the markets. Buyers are afraid to buy during a recession, and sellers don’t want to be seen as givers. a big gap in what they consider the value of an asset.”

3. “As it becomes clearer that we are not falling into a deep recession and interest rates are falling or rising as much as they were in 2022, I suspect you will see more and more deals. The past year has been relatively modest for deals. I suspect 2023 will be better.”

4. “Ever since I first came into the industry in 1987 when I helped found Carlyle, people have been saying, “There is too much money in private equity. The prices we pay are too high. will be as great as people predicted. They were wrong almost every year.”

5. “Almost every year for the past 30 years, private investment has outperformed public market indices by an average of 200 to 500 basis points. incredible. You get a 20% return on other people’s money if you do well, above the minimum return in some cases. As a result, I think people are very motivated to succeed and very careful.”

6. “I don’t really care that too much money is chasing too few deals. Remember that two-thirds of all private equity transactions take place in Western Europe and the United States. The largest portion of the world’s population still has relatively modest direct investment penetration (Rubenstein pointed to China, India, Latin America, Africa, and especially the Middle East as attractive growth markets for direct investment).

Read more: David Rubenstein considers Warren Buffett the best investor. Billionaire Carlyle describes 12 traits and habits that are critical to Buffett’s success.

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