The Great Capital Shift: From Low Rates to Healthcare Nation

Episode notes

Alan Pentz and Moses Sternstein dive deep into the changing landscape of capital markets and investment strategies. They examine the shift from a low-interest rate environment that favored private equity and venture capital to a new era of higher rates and increasing healthcare spending. Moses explains how mandatory government spending, particularly on healthcare, has grown from 30% to nearly 70% of the federal budget, fundamentally altering the economic landscape. The conversation explores Apollo's strategic pivot towards private credit, the evolution of capital markets, and the growing intersection between government policy and private capital allocation. They discuss how asset-heavy investments in AI, clean energy, and infrastructure are changing traditional investment models, and debate the implications of China's industrial policy on global markets.