Rowan states all commercial real estate purchased before 2022 is now worth less due to rates.
“Everything that was purchased prior to 2022 is today worth less. The change in cap rates, the change in interest rates has simply made the market worth less.”
Rowan says 100% of S&P returns this year came from 10 stocks at 50 PE, constituting 35% of the index.
“A 100% of our returns this year are from 10 stocks which constitute 35% of the S and P that traded an average PE of 50.”
Rowan argues equity prices are not low, with average PE in mid-twenties versus historical 16.
“I do not believe prices are low. They are lower, but we're still talking about an average PE as a reference in the mid twenties versus 16 over time.”
Rowan argues extreme valuations in top stocks reflected money flows, not fundamentals.
“We had one stock which was larger than the market cap of every stock exchange in the world other than Japan. That was not necessarily fundamentals. That was money flow.”
Rowan says Apollo's day-one markups on secondaries across its trillion-dollar platform generated less than $3 million in 2025 revenue.
“To give you a sense of revenue for 2025 as a result of this markup, for the year 2025, revenue was sub $3,000,000”