Latest news with #PeterMallouk
CNBC
19-05-2025
- Business
- CNBC
Watch CNBC's full interview with Creative Planning's Peter Mallouk
Peter Mallouk, Creative Planning president and CIO, joins 'Power Lunch' to discuss the market's roaring return from tariff lows, why people need to take the debt downgrade seriously, and much more.
CNBC
19-05-2025
- Business
- CNBC
U.S. politics have accelerated the move away from the dollar: Creative Planning's Mallouk
Peter Mallouk, Creative Planning president and CIO, joins 'Power Lunch' to discuss the market's roaring return from tariff lows, why people need to take the debt downgrade seriously, and much more.
Forbes
14-04-2025
- Business
- Forbes
Sports Investors Are Betting On Growth Despite Tariff Wars
In the world of high finance, tariffs rarely get the spotlight for their second-order effects. They're cast as macroeconomic chess moves—levers of diplomacy, tools of retaliation, or bulwarks of domestic protectionism. But beyond the noise of headlines and hearings, tariffs have a funny way of influencing where capital flows. And increasingly, it's flowing toward experiences, not goods. Call it the 'Experience Economy Advantage.' As tariffs raise the cost of goods and create turbulence in global trade, smart investors are repositioning—toward service-driven, resilient sectors like sports and entertainment. Peter Mallouk, CEO of Creative Planning, one of America's largest independent wealth advisors, offers a clear-eyed take on tariffs: 'The best-case scenario is a global reset—where negotiations produce a slightly more favorable balance for U.S. workers without escalating into an economic war,' he said. 'But the worst case is higher tariffs across the board. That scenario hurts consumers and corporations alike.' When goods get more expensive—think shoes, phones, toys—investors take notice. But here's where things get interesting: service businesses, sports properties, and tech services are largely insulated. No container ships. No customs. Just consumer demand and intellectual property. 'Tariffs tend to be on goods,' Mallouk explained. 'They don't hit sports teams. They don't hit musicians. They don't hit tech services. That's why you're seeing capital migrate into these areas.' For decades, owning a slice of a professional sports team was a billionaire's flex. Today, thanks to the rise of private equity funds and fractional investing platforms, that door is cracking open for accredited investors. 'In recent years, we've seen funds formed around sports and entertainment,' Mallouk said. 'That trend has accelerated—and tariffs would only add fuel to the fire.' It's not just about prestige. Sports franchises are delivering real returns. According to a 2024 Sportico report, the average MLB franchise has more than doubled in value over the past decade. Private equity groups are circling everything from team ownership stakes to sports-adjacent tech—fan engagement platforms, data analytics firms, even stadium operations. 'This is truly a renaissance era in sports, that was born from technological innovation. It's unlocked all kind of investment opportunities and potential,' said George Pyne, Founder & CEO of Bruin Capital, an international sports investment firm. Beyond sports, service businesses are emerging as stealth favorites in a tariff-prone world. Whether it's hospitality, wellness, or high-touch experiential travel, these businesses are lean on goods and heavy on human capital. Why the surge in interest? Because experiences scale differently. They're resilient to supply chain shocks. They're aligned with shifting consumer values. And perhaps most importantly—they're hard to commoditize. As McKinsey put it in their recent report on modern loyalty, 'Brands that deliver emotional engagement through experiences earn deeper and more durable loyalty.' Mallouk called the movement to private assets, 'The democratization of alternative investments.' 'Years ago, private equity was the playground of institutions and ultra-high-net-worth individuals,' he said. 'Today, we're seeing funds with minimums of $50,000 or $100,000—accessible to accredited investors. Pooling through advisory firms opens even more doors.' 'Where we see sports is very comparable to where the private equity industry was with the software industry following the great financial crisis. It could be a once-in-a-generational opportunity," Pyne added. And it's not just sports. Private real estate, private lending, niche service platforms—all are gaining traction as investors seek diversification in uncertain markets. The kicker? These investments aren't directly exposed to tariff headwinds, but they often benefit from the consumer behaviors tariffs indirectly shape. Mallouk also flagged a macro wildcard few are discussing: the U.S. bond market. 'China and Japan are the two largest foreign holders of U.S. bonds,' he said. 'If tensions escalate, they could retaliate by offloading treasuries. That would spike interest rates and drive up the national debt.' In that environment, the allure of tangible, uncorrelated assets—like a stake in a growing sports league or a cash-flowing service business—only grows. Tariffs are a blunt tool. Their collateral damage is often slow and sprawling. But for savvy investors, they're also a signal—a nudge toward sectors that operate above the fray. Sports. Services. Experiences. These are the categories that resonate not just in portfolio performance, but in life itself. As Mallouk put it, 'Eventually, capital flows where it can find safety and upside. Right now, that might just be in the bleachers and backstages, not the factories.'
