Howard Marks thinks that the new sea change will make people want to own more fixed income, because rates will be higher for longer.

He points out that the S&P 500 has returned about 10% per year for the last 100 years – “That’s a good rate of return.”  Today, you get high single digit returns on publicly traded debt securities or low double digit returns on private debt deals.  Mr. Marks asks David Rubenstein, “Isn’t that enough?”  

Mr. Marks also adds that there is lower risk and rates are likely to be between 2-4%.