Taps Coogan – September 23rd, 2020

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Blackstone’s Executive Vice Chairman Tony James recently spoke with CNBC to warn that whenever the market’s current momentum runs out, a ‘Lost Decade’ is looming for investors. He sees rising interest rates, pinched corporate profit margins, and economic headwinds all creating “anemic equity returns over the next five to ten years.”

Watch the full interview below:

There is little doubt that rising interest rates would be a severe headwind for equities and that, eventually, interest rates will rise. However, one has to keep in mind that the Fed has all but promised not to raise interest rates even when economic fundamentals eventually tell them that they should. So, who knows how long this nonsense can go on for.

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