This Alternative Investor’s Take on How Trump Policies Weigh on Businesses

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Mar 23, 2025

Michael Smith, co-head of credit at Ares Management, discusses the economic landscape for midsize businesses that collectively represent a significant portion of the American workforce. He highlights the essential role of private credit in supporting these companies and the challenges posed by tariffs and interest rates. The conversation also explores how midsize firms are adapting to economic uncertainty and the signals of resilience they’re showing despite looming recession fears. A fascinating mix of finance and sports adds a lighthearted touch!

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INSIGHT

Recessionary Concerns

The biggest question is whether a recession is looming.
People will analyze economic data for early signs, particularly reactions to tariffs.

INSIGHT

Impact of Uncertainty

Tariffs haven't significantly impacted data yet due to their fluctuating nature.
However, economic uncertainty itself has consequences, like companies halting hiring or investments.

INSIGHT

Wall Street's Focus

Wall Street focuses on corporate actions and their impact on banking.
Uncertainty often leads to reduced mergers and acquisitions (M&A) activity.

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On WSJ’s Take On the Week, co-host Telis Demos and guest co-host Miriam Gottfried dive into a smorgasbord of forthcoming macroeconomic data that will illustrate how the economy is faring since President Trump’s inauguration. Then, Telis shares what investment bank Jefferies’s forthcoming fiscal-quarter report could tell us about the state of mergers and acquisitions on Wall Street. And it’s baseball season, folks! The co-hosts talk about the latest deal between the San Francisco Giants and private-equity firm Sixth Street.

Later on the show, Telis and Miriam discuss whether middle-market businesses, which include a huge swath of the American workforce, are holding strong as the threat of tariffs continues and chatter about economic uncertainty intensifies with Michael Smith. He’s the co-head of credit at Ares Management, an alternative investment manager that lends to more than 500 midmarket companies.

This is WSJ’s Take On the Week where co-hosts Gunjan Banerji, lead writer for Live Markets, and Telis Demos, Heard on the Street’s banking and money columnist, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead.

Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the show at takeontheweek@wsj.com.

To watch the video version of this episode, visit our WSJ Podcasts YouTube channel or the video page of WSJ.com.