The U.S. equity market is facing threats from private capital and a decline in the number of companies that go public, creating a challenge for retail investors, said Prudential Financial Inc.’s David Hunt, who runs the insurer’s $1.2 trillion asset management arm PGIM.
“I’m worried about the U.S. equities market,” Hunt said Tuesday at the Bloomberg Invest conference in New York. “I don’t think it’s in good shape.”
(Related: Prudential to Realign Its U.S. Businesses)
Hunt’s comments drew support from fellow panelist State Street Global Advisors Chief Executive Officer Cyrus Taraporevala, who said there’s a “de-democratization of investing.” Yie-Hsin Hung, who runs New York Life Insurance Co.’s investment manager, told the audience that the trend isn’t likely to reverse.
“A company, which might have started off in a VC environment, would at some point go public and Joe Public would have a shot at being able to invest in that part of the U.S. economy,” State Street’s Taraporevala said. “Not so much anymore. That’s a real societal problem.”