Despite escalating war in Iran and tariff concerns, Milken Institute conference attendees displayed remarkable optimism this week. Investors and bankers floated between Spago dinners and billionaire parties in Bel Air, seemingly unbothered by geopolitical turmoil. The disconnect between soaring stock markets and global conflict created what one attendee called "blissful ignorance" among the financial elite.

Private equity leaders pointed to new flagship funds from KKR, Blackstone and Ares as evidence of resilience. With roughly $4tn in unsold assets, these firms are betting on market recovery to restart dealmaking. Goldman Sachs partner Christina Minnis noted vibrant equity markets could fuel more IPO exits and acquisitions. Even as war drives up petrol prices, financiers largely brushed off concerns.

Hedge fund manager Ken Griffin stood apart, calling the conflict's casualties a "humanitarian crisis" while praising White House efforts on nuclear nonproliferation. Meanwhile, State Street's Joerg Ambrosius observed $5.6tn in assets under management, noting persistent optimism despite widespread war discussions. European attendees contrasted sharply, describing US enthusiasm as uniquely buoyant.

The conference, spanning both the Beverly Hilton and Waldorf, commanded steep fees from $300,000 to over $1mn. Yet many sponsors questioned value as dealmaking moved offstage. One executive noted rooms were "half empty" except for major speakers like Tom Brady and Jensen Huang, highlighting the growing gap between elite networking and substantive business.