Greed Outpacing Fear in Markets says Goldman’s Solomon

In what may appear as patently obvious to most Goldman Sachs CEO, David Solomon speaking at an event in Singapore said we are living in one of those “periods of time when greed has outpaced fear.” and the global economy is facing a ‘complicated time’.

Gordon Gekko

We are in times not too dissimilar to the 1980’s where the fictional Gordon Gekko ruled and the real Ivan Boesky would most likely be the norm in the moral hazard free 2021.

Soloman says the unprecedented levels of stimulus by governments and central banks have led to reckless exuberance Adding that:

“I think markets generally when I step back and I think about my 40-year career, there’s been periods of time when greed has outpaced fear. We are in one of those periods of times. And generally speaking, my experience says that, you know, those periods are not long-lived.”

What gives you may ask? Solomon says that:

“Something will rebalance it and bring a little bit more perspective. And given it feels like inflation is running above trend, chances are interest rates will move up and that will take some of the exuberance out of certain markets.”

Greed Ivan Boesky

Expect the unexpected is our thoughts as nothing is as it seems.

From The TradersCommunity US Research Desk