“Something Will Rebalance”: Goldman Boss Solomon Warns That Market Greed Is Outpacing Fear
Goldman Sachs boss David Solomon is the latest to speak out and admit that the market is running at a fever pitch.
In kinder terms, Solomon said this week that greed in the market is now outpacing fear, according to Bloomberg.
He was speaking at the Bloomberg New Economy Forum in Singapore, where he commented: “When I step back and think about my 40-year career, there have been periods of time when greed has far outpaced fear — we are in one of those periods. My experience says those periods aren’t long lived. Something will rebalance it and bring a little bit more perspective.”
Goldman’s comments come as indexes are up nearly multiples of themselves since the March 2020 drawdown as a result of market participants digesting the coming effects of Covid.
Solomon continued: “Chances are interest rates will move up, and if interest rates move up that in of itself will take some of the exuberance out of certain markets.”
He also commented about moving to a “green economy” and, like many who have been advocating for the coming trillions in printed dollars that will fund the “war” against climate change, argued that steps taken would need to be drastic. “We have to recognize we are trying to drive very dramatic change,” he said.
Goldman has said in the past it will be difficult to stop working with the fossil fuel industry altogether.
Solomon also commented on China, stating that the country wants to grow its capital markets and can do so by continuing to participate in other parts of the global economy.
There has been pushback on some Wall Street banks for wanting to move business into China, especially as the U.S. stands at odds with Beijing on a number of issues, including Taiwan. Goldman “has plans to double its workforce in China to 600 and ramp up in asset and wealth management,” Bloomberg reported.
He said: “I think China wants to grow its capital markets, they want more listing activity in Hong Kong and onshore. [The participation of global institutions] strengthens their capital markets and so my guess is they’ll continue to support that, but the world can change.”
Covid restrictions in Asia are marking a “headwind for global talent in that part of the world,” Solomon concluded.