Can Alternatives Replace Public Equity?

In 1964, a group of economists and policymakers warned the White House that a new technological revolution—what they called “cybernation”—would usher in an era of near-limitless production with progressively less need for human labor. The implication was clear: mass unemployment was not just possible, but inevitable. Sixty years later, the language has changed, but the fear has not. Artificial intelligence is more sophisticated, the technology more powerful, and the capital behind it more substantial. But the core question remains the same: will AI fundamentally displace labor, or reshape it?

Public equities are near all-time highs. By most accounts, portfolios look healthy. But beneath the surface, the foundation supporting those returns has weakened as risk compensation has thinned, concentration has intensified and traditional diversification is no longer working the way it used to. For investors who held through the recent turbulence, this may be a rare opportunity to reassess portfolio allocations before the market forces action.

Credit markets are entering a period of transition. At Apollo’s 2026 Credit Annual Meeting, partners across the firm discussed the technological disruption, refinancing pressure from higher rates and geopolitical uncertainty that are beginning to drive greater dispersion across sectors, borrowers and capital structures.