In mid-2023, global markets had recovered much better from the challenging year of 2022 than many investors had anticipated. However, concerns about a recession had not completely dissipated. At the second annual Iconoclast Summit Forbes, over 30 influential investors and business leaders gathered to share insights into how they are advancing their companies during these challenging times, where they are investing, and what opportunities and risks they see in AI development. TopWealth.world has selected the key quotes from the summit.
Billionaire Ray Dalio, founder of Bridgewater Associates
- “Things that surprised me did not happen in my lifetime, but they repeated many times in history. Studying the period from the 1920s to 1945, I understood the nature of the 2008 financial crisis. My investment success largely depended on studying history.”
- “I see worrisome trends that may signify the decline of the world order led by the United States. Three socio-economic factors influencing the current development cycle: a massive and growing debt load; domestic conflict over wealth inequality, fueling the rise of populism; China’s emergence as a global leader.”
- “The relative position of the United States has deteriorated, while China’s relative standing has improved. I’m not saying the Chinese will defeat the Americans, but they will be comparable forces in the conflict. And these conflicts are multifaceted.”
- “When you develop new technologies, be prepared for the world to change unpredictably.”
David Solomon, CEO of Goldman Sachs
- “In our outlook, Goldman Sachs’ chief economist, Jan Hatzius, has reduced the likelihood of the U.S. entering a recession next year from 35% to 25%. The economy has been incredibly resilient. The level of inflation will be somewhat higher than what the market expects. If your business is anything like ours, you need to be prepared for risk.”
Mary Callahan Erdoes, CEO of JPMorgan Asset & Wealth Management
- “Market downturn conditions and regulatory uncertainty in the banking sector make Europe an attractive region for banks to expand their business. Conduct a stress test of your portfolio.”
Mikhail Katz, Head of Investment and Corporate Banking at Mizuho Americas, and Aryeh B. Bourkoff, Founder and CEO of LionTree Capital
- “The M&A market has come alive with the influx of capital from sovereign wealth funds. If you’re a strong, well-capitalized company, it’s time to take action.”
- “Industrials, healthcare, and technology are sectors with particularly high deal activity.”
- “Interest in artificial intelligence is directing capital into industries that can benefit from automation. For example, on June 12th, the world’s second-largest pharmaceutical corporation, Novartis, announced the acquisition of Chinook, a developer of drugs for a rare kidney disease, for $3.5 billion. Nasdaq also announced the acquisition of fintech company Adenza for $10 billion.”
Amir Salek, Senior Managing Director of global investment company Cerberus Capital Management
- “The power of computers has reached a level where AI has transitioned to an even more powerful stage of development. Now, AI has enough data and computational power.”
Julian Salisbury, Director of Innovation in the Asset and Wealth Management Division of Goldman Sachs
- “Investors are looking for AI development opportunities not only in the technology sector. Artificial intelligence for microfinance solutions in Africa, healthcare, and education are more efficient for capital investment. It’s a time when productivity and affordability have converged. This will lead to a new wave of AI innovations.”
Ashvin Chhabra, President and CIO of Euclidean Capital, who manages the hedge fund portfolio for billionaire Jim Simons
- “I’m skeptical of valuations of AI and technology companies that have surged this year. I think technology is overhyped. We already have the technology to solve most of our problems; it’s happened over the last 50 years. Problems are solved by people, not technology.”
Ed Cass, CIO of the CPP Investments, a Canadian pension fund managing $570 billion in assets
- “Assumptions that interest rates may drop and inflation may go from 4.5% to around 2% are not guaranteed. I recommend reducing the weight of fixed-income investments in the near term. Activity is very low right now. There’s a significant gap between buyers’ and sellers’ expectations, and it’s not being bridged.”
Ida Liu, Global Head of Citi Private Group
- “Geopolitical instability is one of the reasons for portfolio diversification, given the tension between the US and China. Emerging markets are trading at a 40% discount, and the US dollar is at a 50-year high, so I’m looking for investment opportunities in Southeast Asia.”
Howard Morgan, Chairman and General Partner of venture capital firm B Capital and hedge fund Renaissance Technologies
- “In 2012, 85% of the world’s unicorns were based in Silicon Valley. Now, it’s only 20%. 40% are in China and 40% are elsewhere in the world or somewhere in the US. There are tremendous opportunities in India, Indonesia, and Southeast Asia as a whole. We invest one-third of our funds outside the US. That’s where the growth is.”
Anthony Scaramucci, Founder of SkyBridge Capital
- “There’s a resurgence in traditional hedge funds that fell out of favor over the last decade. Hedge fund assets have grown from $2 trillion to $3.8 trillion over the past 10 years, whereas most other asset classes have at least doubled or tripled with near-zero interest rates.”
Carter Reum, Co-Founder and Partner at M13 Ventures
- “The best assessment of the AI boom is not in new AI companies but in evaluating companies within your portfolio and figuring out where they can utilize AI. We need to be cautious not to get burned by the AI hype.”
- “I’m still bullish on the future of blockchain technology, despite regulatory uncertainties in the United States.”
