In the next 5-10 years, interest rates will normalize and companies will face 'plenty of headwinds' that put pressure on earnings, said Blackstone's Executive Vice Chairman, Tony James.
that stock prices may not rise further after becoming fully valued over a "five- to 10-year horizon."
He explained that current low interest rates may not dip further and may instead rise to more normal levels in the coming years.High borrowing costs will eat into company profits and hurt share prices. "All of that will be economic headwinds for companies. So I think you can have disappointing long term earnings growth with multiples coming in a little bit, and I can see anemic equity returns over the next five to 10 years," he added.pandemic, U.S. stock markets have climbed higher after plunging in March.bringing interest rates down to near zero, which left investors hunting for yield with few options to park their money.
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