He comes at a time when most pro managers of large, long-term institutional money are deeply worried about the reverse: A world in which there is a massive surplus of capital relative to opportunities to deploy it productively to compound cash.
The approximate thought process of the median professional manager of institutional financial assets today is:
Stocks suck, bonds suck, real estate sucks. Hedge funds keep blowing up. Private equity returns are reverting to mean. Venture Capital is on the fringe at best. How can I possibly generate returns sufficient enough to fund future obligations in a low-growth, low-return world? I am very, very nervous.
The developed world is slowing and aging too fast; the developing world is not developing fast enough and the price of every asset is already high.
They and Piketty cannot both be right. Ironically, Piketty is the far more optimistic one regarding the future of capitalism, growth, and innovation.
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@pmarca Says 