Apollo’s Zito Warns Trade War Risks Eroding US Dominance in Capital Markets

The US is risking potential erosion of its longtime dominance in capital markets amid President Donald Trump’s global trade war, warned John Zito, co-president of Apollo Global Management Inc.’s asset-management arm.

“US-listed companies have consistently traded at 40% to 70% valuation premiums over global peers — not just because of earnings strength or sector mix, but because capital trusts this system,” Zito wrote in a letter to investors seen by Bloomberg News. “The longer and more volatile the path to a trade-policy reset, the greater the risk to this regime and its benefits.”