Goldman boss David Solomon warns of a stock market drawdown: ‘People won’t feel good’
PUBLISHED FRI, OCT 3 20258:01 AM EDTUPDATED 18 MIN AGO
Goldman Sachs CEO David Solomon said AI presented opportunities, but some investors were overlooking “things you should be skeptical about.”
Speaking at Italian Tech Week in Turin, Italy, he said a “drawdown” was likely to hit stock markets in the coming two years.
“I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns,” he said.
David Solomon, chief executive officer of Goldman Sachs Group Inc., speaks at the Financial Review Business Summit in Sydney, Australia, on Tuesday, March 4, 2025. There is a "very small" chance that the US economy tips into a recession, despite the uncertainty surrounding global trade policy, according to Solomon. Photographer: Brent Lewin/Bloomberg via Getty Images
David Solomon, chief executive officer of Goldman Sachs.
Bloomberg | Bloomberg | Getty Images
Stock markets are due a “drawdown” in the next year or two after years of being propelled to record highs by an AI frenzy, according to Goldman Sachs CEO David Solomon.
“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 … there are going to be winners and losers,” he said at Italian Tech Week in Turin, Italy, on Friday.
Solomon pointed to the mass adoption of the internet in the late 1990s and early 2000s, which led to the emergence of some of the world’s largest companies — but also saw investors lose money to what became known as the “dotcom bubble.”
