Schwarzman Expect ‘Big V’ Economic Rebound in Next Few Months

teve Schwarzman, chief executive officer of Blackstone Group Inc., said the economy is likely to benefit from a V-type recovery in the next few months.

“You’ll see a big V in terms of the economy going up for the next few months because it’s been closed,” Schwarzman, co-founder of the world’s biggest alternative asset management firm, said.

While markets are benefiting from both liquidity and optimism that the coronavirus crisis can eventually be contained, Schwarzman said the economy will “take quite a while before we sync up and get back to 2019 levels.”

Also at the event, hedge fund manager Bill Ackman said he believes the recovery will begin by year-end and a normalization of the economy in the second half of 2021. Ackman said he sees gradual improvement on all fronts with so many resources poured into the health-care crisis.

Blackstone has been “aggressively” looking to put some of its $150 billion in dry powder to use, Schwarzman said in April. He also said that while all companies, including Blackstone, will be affected by the pandemic, the pain will be temporary, citing the U.S. government’s stimulus efforts. The New York-based firm saw asset values across most of its business segments plunge in the first quarter because of the economic fallout from the virus, but its long-term focus should put it in a position to hang on to companies as they regain strength.