U.S. stocks soar in celebration! Apollo CEO pours cold water: Probability of external impact on economy exceeds 30%, be prepared for market correction.

Apollo Global Management Inc (APO.US) CEO Mark Rowen said on Wednesday that the company has positioned itself early to prepare for potential market pullbacks. Rowen estimates a 30% to 35% probability of the economy facing external shocks, much higher than the usual risk level. He also added that a combination of factors could lead to market turbulence, including a "complete reshaping of GEO Group Inc's political landscape", trade and immigration policies that could trigger inflation, and the impact of artificial intelligence on the labor market. Rowen said, "Constraining the supply of goods, limiting the supply of labor, and restricting the free flow of goods and labor even for reasonable and legitimate reasons would lead to inflation in the short term, even though we have not yet seen any signs of it." Apollo has taken measures to address potential market downturns, including improving the credit quality of its fixed income investments, reducing exposure to industries such as software, and building cash reserves in its insurance division. Rowen commented, "Our primary focus in investing right now is to preserve capital. Once the market experiences a pullback to be frank, we expect it we can stand firm and weather the cyclical fluctuations." Rowen also criticized some practices of other insurance companies, stating that these practices may make their balance sheets appear more robust than they actually are. He bluntly said, "Not all institutions in the industry are doing what they should be doing, and not everyone adheres to our business philosophy. We are indeed concerned about the possibility of risks spreading." Rowen, who co-founded Apollo in 1990, has led the company's transformation into a giant in the alternative assets and insurance industry. He expressed his concern about external factors disrupting the economy's stability now more than ever in his forty-year Wall Street career. His remarks come at a time when US stocks continue to reach new highs. Financial executives, including JPMorgan Chase CEO Jamie Dimon, have issued similar warnings. On Wednesday, expectations of progress in US-Iran relations drove stock indices higher, with the Nasdaq and S&P 500 hitting new record highs. The S&P 500 rose to a high of 7369.22 points, and the Nasdaq rose to a high of 25850.19 points.