1. Trump's executive order aims to include private assets in 401(k) plans. 2. The order could enhance access for managers like Apollo and Blackstone. 3. Companies worry about higher fees leading to employee lawsuits. 4. U.S. defined-contribution plans hold $12.4 trillion, expanding private equity access. 5. Further reforms are anticipated to boost adoption of private-market investments.
The inclusion of private assets could lead to increased investment inflow, potentially boosting S&P 500 components. Historical precedents show that deregulation in financial markets can drive significant stock price appreciation.
The shift towards including private-market investments in retirement accounts could reshape capital flows in the market, particularly affecting large private equity firms, aligning with long-term growth in the S&P 500 sectors.
As companies adapt to new regulations, it will take time to see widespread investment in private markets. Historical case studies, such as the 2010 JOBS Act, illustrate that significant market shifts often unfold over several years.