Rowan observes yield curve steepening with ten-year rates rising despite lower short rates.
“And what we're seeing is a steepening of the yield curve. Rates that matter, the ten year, are higher even if short rates are lower.”
Rowan sees US moving from hyperexceptionalism to merely exceptional, though alternatives could emerge over time.
“What I've said is I see us moving from what was hyperexceptionalism to merely exceptional because I don't think there are good alternatives to The US today, but that can change over time.”
Rowan dismisses disappointment from investors who expected a God-given right to 11% annual returns.
“Those people who are tied to asset prices who thought we were had a God given right that everything move up at 11% annually are disappointed.”