Ken Griffin, CEO of Citadel, believes markets will likely rally once the uncertainty surrounding the upcoming U.S. election dissipates.
Speaking at the Future Investment Initiative (FII) conference in Saudi Arabia, Griffin said, “The reduction in uncertainty is almost always positive for asset prices.” He noted that the current political climate, with Trump slightly favored but the outcome still close, has created “peak uncertainty” in the markets.
Griffin expects a “risk-on environment” once investors adjust to the new administration, whether it’s led by Trump or Harris.
The FII event, organized by Saudi Arabia’s Public Investment Fund (PIF) with $925 billion in assets under management, drew other high-profile financial leaders, including BlackRock CEO Larry Fink. Fink discussed the massive capital required for digitization and decarbonization and highlighted Walmart’s use of artificial intelligence to optimize its retail operations.
“There’s $9 trillion sitting in money markets,” he noted, adding that the push to build out this infrastructure could fuel equities for years to come.
Fink also pointed out that while price-to-earnings ratios appear high, they may be less extreme than they seem, as corporate earnings catch up.
He challenged the traditional view that rising interest rates stifle economic growth, suggesting instead that the aging population and prevalence of fixed-rate mortgages have altered this dynamic.
As the global business community navigates current geopolitical tensions, the FII has continued to attract corporate leaders, signaling a shift in how executives approach investment opportunities in the region.
