What's next in the markets? 5 executives share their predictions

Every investor wants to know: what does the future hold for the stock market?

"People are actually gonna need to figure out how to be good investors going forward. And we have not yet mentally adjusted. What happened over the last 10 years is abnormal." -Marc Rowan, Apollo CEO

"Our outlook is more negative going forward... and more people need to catch up with us, which means that we're probably going to have more volatility and more drawdowns ahead of us." -Katie Koch, TCW CEO

"Our view remains that at the moment the markets are over optimistic around where we're headed with both [interest] rates and recession." -David Hunt, PGIM CEO

"I think the traditional model that is investor built is now gonna be challenged a bit as you leverage AI to be able to find unique insights. So I think the asset managers that have the bigger and broader data set that they can apply AI to are gonna have an advantage." -Jenny Johnson, Franklin Templeton CEO

"It's hard to argue that the world isn't heading towards a more carbon neutral state of being. So we want to be at the forefront of that to help clients figure out what's real, what's not real, who's actually doing things versus who's just saying they're doing things." -Jeff Solmon, TD Cowen President

(Disclosure: Apollo Global Management is the parent company of Yahoo and Yahoo Finance)

Video transcript

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MARC ROWAN: People are actually going to need to figure out how to be good investors going forward. And we have not yet mentally adjusted. What happened over the last 10 years is abnormal.

KATIE KOCH: One of my main takeaways is that people look a little too happy for me here. We're a little bit more pessimistic about the global outlook. And I'm struck by the fact that I think sentiment's actually still relatively positive here.

DAVID HUNT: Our view remains that, at the moment, the markets are overoptimistic around where we're headed with both rates and recession. And what I mean by that is that, actually, they're underestimating the strength of the American economy, which actually is in very good shape. The consumer is continuing to spend.

You know, early days, they spend money on goods. Now they're spending money on services. But the economy is actually doing pretty well. That's the good news. The bad news is that means the Fed's going to have to do more to begin to slow aggregate demand.

KATIE KOCH: My main message to you would be that our outlook is more negative going forward than probably consensus, and more people need to catch up with us, which means that we're probably going to have more volatility and more drawdowns ahead of us.

BRIAN SOZZI: Are you still seeing the appetite for ESG research, ESG knowledge, let's say, three years into all this interest really exploding into the scene?

JEFF SOLOMON: I do. Like, it's not going away. Like, you know, like, most markets, right, people can get ahead of themselves and overpromise and underdeliver. I think ESG is true also. Like, we're going to be-- there's going to be a big global push to be carbon neutral by 2050.

It's hard to argue that we're-- that the world isn't heading towards a more carbon-neutral state of being. And so we want to be there at the forefront of that to help clients figure out what's real, what's not real, who's actually doing things versus who's just saying they're doing things.

JENNY JOHNSON: I think the traditional model that an investor built is now going to be challenged a bit as you take-- as you leverage AI to be able to find, sort of, unique insights. And so I think the asset managers that have the bigger and broader data set that they can apply AI to are going to have an advantage.

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