The CEO of Goldman Sachs, David Solomon, has 4 major predictions for the markets and the economy in the coming years
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David Solomon says he feels rather well on actions and the economy.
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The CEO of Goldman Sachs made four predictions during the floor during a technological conference this week.
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A stock sample and a wave of AI trade losers are things about its radar.
The best leader of Goldman Sachs is many markets, with significant warnings.
David Solomon, the CEO of the bank, took an optimistic tone when he spoke Friday of the American actions and the economy in the Italian technological week. Despite certain risks on his radar, the CEO of the investment bank said that he was generally not Bothené about the state of the markets, even if the concerns infiltrate a potential market bubble and a slowdown economy.
“I sleep very well and I will not go to bed every evening worried about what will happen next,” said Solomon, speaking to Bloomberg at the conference.
However, although its long -term vision is mainly optimistic, investors must be aware of certain risks on the horizon.
Here are the four predictions of Solomon on what then comes for the markets and the economy.
Historically, the stock market has “run” from its potential when there is a new technology that generates a lot of interest and excitation, said Salomon. It seems to be the dynamic now, he said, commenting on the S&P 500 records sequence in the second half of this year.
The reference index rallyed from its lowest in early April after the prices were announced and increased by 15% for the start of the year.
“You will see a similar phenomenon here. I would not be surprised if in the next 12 to 24 months, we see a withdrawal from the stock markets. But that should not be surprising given the race we had,” said Solomon.
Solomon had no exact prediction on the quantity or the moment when the market could drop. A Goldman Sachs report in August estimated that the S&P 500 was more than 20% chance of a withdrawal in the next 12 months.
Solomon underlined the Internet boom in the 1990s and the early 2000s, during which a handful of technological horses emerged. Some of these societies, such as Amazon, continued to prosper, while other societies that skyrocketed at the start of the boom have slowly passed out.
“I guarantee you, at the end of the move, there will be a bunch of winners and there will be a lot of losers. There will be a lot of capital that have finally delivered very attractive yields, and a lot of capital that have been deployed that have not provided returns,” said Solomon, adding that this model was typical for a large investment cycle.
