Wall Street Banter At SALT iConnections NYC 2023: Insights, Outlooks From Industry Leaders

Last week, SALT and iConnections held a conference at The Glasshouse in NYC. The event provided thought leaders with a platform to share insights on the future of innovation, investing and global financial trends.

Here are some key takeaways and perspectives.

Assets On Blockchain: June Ou, the co-founder and president of Figure, addressed the obstacles associated with blockchain adoption, noting excessive regulatory concerns. She stressed the need to establish frameworks supportive to digital assets, aligning with predictions made by Morgan McKenney, CEO of Provenance Blockchain Foundation, who suggested a significant portion of financial assets will undergo tokenization in the next decade.

Investing On Autopilot: A thought-provoking parallel was drawn between the aviation industry and the field of investment, highlighting the evolving role of machines in asset management; airplanes have become safer with fewer pilots and more computers.

The consensus is the investment landscape will depend more on AI-powered strategies. Jason Calacanis, the CEO and Founder of LAUNCH, delved into the potential implications of AI in detail, suggesting many may find themselves unemployed due to the advent of AI, which can enhance operational efficiency by two or threefold.

Calacanis added AI would empower individuals to transcend their limitations; with AI, “everyone is going to turn into a superhero.”

Consumer Fintech Wave: Lauren Kolodny, the co-founder and managing partner at Acrew Capital, spoke on the prospects of consumer fintech, proclaiming the industry is on the brink of a transformation.

"We have the next wave of consumer fintech upon us," she predicted, emphasizing that an aspect of navigating the evolving landscape is fostering collaboration and providing unwavering support to companies operating in the sector. Her primary focus lies in bolstering these companies through collaborative approaches that drive meaningful change for years to come.

Bond Investing Attractive: Jenny Johnson, the CEO at Franklin Templeton, discussed the macro outlook for finance in 2023 and beyond.

"Barring social media, it feels like we're past [the bank crisis]," she said. 

Therefore, to pay higher rates for a more extended period of time, along with more expected volatility in equity markets, particularly as private market investors raise cash through public markets to meet capital calls, diversification in fixed income that is not “far out on the risk curve” is intriguing, regardless of the debt ceiling issue since the U.S. is “not Greece or Argentina.”

Venture Capital Globalization: Christine Tsai, the CEO and founding partner at 500 Global, emphasized the global nature of entrepreneurship and the need to look beyond traditional hubs like Silicon Valley. 

Arvind Ramamurthy, chief market development officer at Abu Dhabi Global Market, added that Abu Dhabi positioned itself as the go-to place for innovation and investment.

Tsai said the end of a market cycle is the start of a new cycle; it is a “great time to invest, especially in the early stages.”

The Role of Alternatives and Credit: Joe Dowling, senior managing director and global head at Blackstone Inc BX Alternative Asset Management, discussed the opportunities presented by credit markets with more than $2 trillion of debt soon coming due.

Dowling expressed a positive outlook on international equities and stressed the importance of a disciplined approach in growth-stage investing.

He added that in a quantitative tightening era, cash is not trash; rates are likely to stay higher for longer, and inflation will be persistent, particularly given structural factors the Federal Reserve can’t control, such as “bringing supply chains back to the U.S.” and “decarbonization.”

Photo: Benzinga