European markets head for mixed open as traders focus on Fed decision
"There will be a lot of uncertainty," she said in an interview with CNBC's Sara Eisen from the sidelines of Milken Institute Global Conference Tuesday. "This is a process and it's going to take time. We are going to continue to get a series of conflicting data points."
"We've got a lot of dry powder and we're excited for the opportunity to lean in when that happens," she added.
The path of the economy can range anywhere from a soft landing to a recession to stagflation, Koch said. At the moment, she said a recession is possible but is too difficult to predict.
In the meantime, selectivity is key across the board, she said. In equities, there are some bottom-up opportunities and in private credit, she sees an opportunity in rescue financing. Still, longer term, Koch still believes in the artificial intelligence revolution and the shortage of energy to support it.
"Do I think there is massive wealth creation opportunities in equity markets by allocating capital to AI and energy? 100%," Koch said. "I just think in the near term we've got a lot of volatility that we'll have to weave through."
— Michelle Fox
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