Goldman Sachs CEO David Solomon Has 4 Big Calls for Markets and The Economy

Goldman Sachs’s Top Executive is Feeling Good About Markets, with some important caveats.

David Solomon, The Bank’s CEO, Struck an Upsbeat tone when Speaking About Stocks and the US Economy at Italian Tech Week on Friday. Despite some risk on his radar, the ceo of the investment bank said he was generaly unbothered the state of markets, the eve as the Concerns Swelt A Potential Stock Market Bubble and A Slowing Economy.

“I sleep Very well and i’m not going to bed every night worried about what will will next,” Solomon Said, Speaking to Bloomberg at the Conference.

Yet, while his long-term view is Mostly optimistic, investors showed be aware of some risk on the horizon.

Here are Solomon’s Four predictions about what comes next for markets and the economy.

The Stock Market Could See a Drawdown in the Next Few Years

Historically, The Stock Market Has “Run ahead” of its potential when there is a new technology that generates a lot of interest and excitement, Solomon Said. That appears to be the dynamic now, he said, commenting on the s & p 500’s streak of records in the second half of this year.

The Benchmark Index has rallied Back from it Low in Early April AFTER FARIFS WERE ANNOUNCED, AND IS UP 15% YEAR-DATE.

“You’re going to see a simillar phenomenon here. I was surpassed if in the Next 12 to 24 months, we see a drawow with respects to equity markets.

Solomon didn’t have an exact prediction for how much much or when the market dope. A Report from Goldman Sachs in August Estimated that the S&P 500 HAD More than a 20% Chance of Seeing a Drawdown with the Next 12 Months.

The Bull Market Will Create Winners and Lerses

Solomon pointed to the Internet Boom of the 1990s and Early 2000s, During which a handful of Tech Front-Runners Emerged. A Few of Those Companies, Like Amazonhave continued to prosper, while other companies that soard in the Early days of the boom have Slowly faded away.

“I guarantee you, at the End of the Move, there is a bunch of winners and there a bunch of loons. There’ll be a bunch of Capital that was deployed u ultimately delivered returns, and a lot of Capital say wa detital. Returns, “Solomon Said, Adding that this pattern was typical for any Large Investment Cycle in Markets.

The US Economy Will Remain Strong

Solomon Expects Growth to Accelerate in 2026.

The Economy Grew at 3.8% in the Second Quarter. GDP Growth Will Likely Remain at Just Under 2% Going Forward, Solomon predicted, which is slightly below historical trend but still reflective of an economy that “in plety good shape.”

“But i think two Things you have to watch. You have to watch labor,” he said, pointing to recent weakness in the nonb market. “I Think You’ve Also Got to Watch Inflation and Whether or Not the Impact of Trade is Just a One-Time Price Movement or There’s Something More Significant that Comes Through,” He Added, Reflection to the Inflationary Impact of Tariffs.

Dealmking Will Ramp Up

Solomon Also Expects 2026 to be another Big Year for Dealmking. That’s partly duue to looser regulation in the Space, as well as corplate leaders looking to increase compatitiveness in their industries as much as Possible, Solomon Said.

The Dollar Value of Mergers and Acquisitions has surged 29% year-over -ear in 2025, while the number of m & as has Risen 8%, Goldman Analysts Wrote This Week. The bank said it Expects the Number of Deals to Rise by Another 15% Next Year.