At the 2025 Milken Institute Global Conference in Los Angeles, a blend of hope and apprehension defined the mood among the financial and corporate elite. Held at the Beverly Hilton Hotel, the annual gathering attracted a high-profile lineup of CEOs, investors, and policymakers, all grappling with the uncertainties of a volatile market and shifting political landscape. Kamal Bhatia, CEO of Principal Asset Management, encapsulated the general sentiment by acknowledging widespread unease among executives, noting that many leaders remain anxious about ongoing trade tensions, government spending cuts, and market fluctuations.
Yet, despite the concerns, there was also a strong current of optimism, particularly regarding technology and economic reform. Tony Minella, co-founder of Eldridge Industries, emphasized his positive outlook on innovation and cost-saving measures, calling it a “fantastic time to live.” The mood reflected recent market behavior: while President Trump’s high tariffs initially caused a sharp downturn—bringing the S&P 500 nearly 20% below its peak—markets have since regained roughly two-thirds of those losses, buoyed by promises of trade negotiations and regulatory relief.
Financial Caution Drives Global Reassessment
Though there were reassurances, including from Treasury Secretary Scott Bessent who hosted private dinners and public speeches to calm investor nerves, many attendees acknowledged that the U.S. economic future remains murky. With corporate deal-making largely on pause and trade uncertainties lingering, some investors expressed skepticism about overly rosy forecasts. “There may be wishful thinking in all that,” said Ron O’Hanley, CEO of State Street, noting that no one can predict how the current climate will unfold.
This uncertainty is fueling a quiet but noticeable pivot away from the U.S. economy. Fund managers, including those overseeing university endowments and pension funds, are reconsidering their domestic-heavy portfolios. Kim Lew, head of Columbia University’s endowment, remarked that while recent years justified the U.S.-focused approach, many now regret not allocating more internationally. The reevaluation includes growing concerns over the long-term stability of the U.S. dollar and the country’s $36 trillion national debt. Alan Schwartz of Guggenheim Partners warned that foreign investors may reduce their holdings in U.S. assets if confidence in the dollar continues to decline—potentially jeopardizing the government’s ability to finance its obligations.
Milken’s Return and Reflection on American Values
Closing the conference, Michael Milken delivered a rare keynote address—his first since 2017—offering a broader perspective on economic resilience and the American dream. Once a controversial figure in finance, Michael Milken is now associated with the Milken Institute, which reflects on themes of freedom, opportunity, and second chances. Pardoned in 2020 after serving time for securities fraud in the 1990s, Milken now uses his platform to champion public health, education, and entrepreneurship. “In America, you have a chance to try, and if you fail, you have a chance to try again,” he told the audience.
Although immigration policy was notably absent from the conference’s formal agenda, a representative from the Milken Institute ended the speech by honoring immigrants’ contributions to the country, quoting President Reagan’s farewell address, and calling for a renewed appreciation of freedom and opportunity. His remarks offered a hopeful counterbalance to the financial uncertainty dominating the event—a reminder that despite economic anxieties, many still see possibility on the horizon.
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