David Solomon, Chief Executive Officer of Goldman Sachs speaks at the Milken Institute Global Conference, Beverly Hills on April 29, 2019.
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According to the Financial Times, investors shouldn’t be expecting that the current bull run in stocks or other assets will continue. Goldman Sachs CEO David Solomon.
Equities are on track to enjoy three straight years of double-digit returns, as measured by the S&P 500, thanks in part to the extraordinaryThe Federal Reserve and other central bank members provided support at the outbreak of the coronavirus epidemic. This boom is now spreading to other assets such as real estate and art, as well as cryptocurrencies.
Solomon replied Tuesday to Joe Kernen’s question about the “returns in equity” and “other assets in the future,” saying that “we would not expect to see the same rates of returns over the next few year that we have seen in the last two years.”Squawk Box.”
Solomon stated that he is not convinced that compounding double-digit equity returns in perpetuity, which Solomon claims to be a good investment strategy, is what you can expect. I’ve served on a variety of investment committees as well as charitable foundations, college boards and the results we received in the past three to five year are not what we should be expecting going forward.
Solomon leads one the largest global investment banks and was asked about a range of subjects including bitcoin, China, inflation, return to office, work, China and more.
While banks seem to have recovered from last year’s concerns that the pandemic might sting revenue, Solomon indicated that Goldman shares are still considered undervalued. Shares of Goldman have risen by 48% in the past year.
Solomon explained, “Like all CEOs, you know that I believe my company is underappreciated. My stock is also undervalued,” Solomon added. “I believe the traditional financial sector’s earnings power is very strong and that our earnings are very, very high multiple.”
This is a developing story. Keep checking back for more updates.