Goldman Sachs chief executive David Solomon thinks historical patterns suggest equities could lose steam in the next year or two.
Solomon says in a new interview with Bloomberg that the market is already “looking forward” regarding the excitement surrounding artificial intelligence (AI).
“Markets run in cycles, and whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential. Because there are going to be winners and losers.
They’re going to be winners and losers. If you go back and think about the internet, pick on Amazon – Amazon was one of many companies that was prosecuting that kind of opportunity. Many of the companies went away. Amazon became an incredible company.
You’re going to see a similar phenomenon here. I wouldn’t be surprised if in the next 12-24 months, we see a drawdown with respect to equity markets, but that shouldn’t be surprising given the run we’ve had.”
Solomon, however, says he’s optimistic the US economy will accelerate heading into 2026.
“I think that as the trade policies are absorbed, and you have the continued stimulus and the continued tech spend, you’ve got a pretty good tailwind.”
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