Current market valuations may be high by absolute standards,
but these prices are not overly high when factors like economic
performance and impending tax reform are taken into account,
according to Blackstone Group Chief Executive Officer Stephen
Speaking at the 2017 Delivering Alpha conference, hosted by
CNBC and Institutional Investor at the Pierre Hotel
in New York, Schwarzman pointed to positive economic growth
around the world and the promise of tax reform and
infrastructure spending in the U.S. as events that could move
If you get tax reform, if you get an infrastructure
bill thats substantial, you could have the economy go up
for some time, he said.
Schwarzman said he believed tax reform would be accomplished
before mid-term elections, if Republican politicians hope to
remain in office. He estimated that the federal corporate tax
rate would be cut to somewhere between 22 percent and 28
Theres certainly consensus to do that, he
said. I think the probability something gets done is
[II Deep Dive: Schwarzman on Hedge Funds, Private Equity and
Until last month, Schwarzman had served in an official
capacity as an advisor to President Donald Trump as the head of
his strategy and policy forum. The council disbanded last month
shortly after Trump failed to immediately and explicitly
condemn the white-nationalist rally in Charlottesville,
Virginia that ended in deadly violence. CEOs on the council had
fallen under pressure from shareholders and employees to
publicly distance themselves from the administration.
People were under legitimate, astonishing
pressure, Schwarzman said. I was accused of being a
Nazi Im Jewish.
The Blackstone CEO said he continues to speak to Trump,
although he would not comment on how often or the exact nature
of the relationship. He said he previously advised both
President George W. Bush and President Barrack Obama, arguing
that he has an obligation to serve regardless of which
political party is in office.
Im a great believer that people who have a
background thats relevant should help their government
and help society, Schwarzman said. Now thats
become a little controversial.
The billionaire co-founder of Blackstone, the worlds
largest private-equity firm, added that we all have a
higher obligation than just making money.
Although Schwarzman said he believed economies around the
world are currently pretty good, he warned that
there are some major geopolitical risks, such as the threat of
nuclear war with North Korea.
There are some bad things going on, he said.
Those are the things I think about.