Private Equity titan Henry Kravis has seen a lot during his half century on Wall Street. But he says he has never seen turmoil like this. Thanks to COVID-19, and the Fed’s attempt to backstop markets for fear that a crash could translate into harm for the real economy, 500-point swings back and forth have become routine.
“I’ve been investing for over 50 years, I don’t remember a time when I’ve seen such volatility as we see today,” Kravis, the co-founder of KKR & Co., said Friday during a live Bloomberg webcast.
“Just look at our markets in the US, we’re up one day 300, 400 points and then the next day, for almost no reason, we’re down 400 to 500 points.”
Kravis praised central banks’ global stimulus efforts for staving off economic collapse, but warned that markets remain unnerved by the virus, and that any news related to a vaccine or therapeutic would likely impact sentiment.