Goldman Sachs CEO David Solomon warns stock market drawdown is coming

According to David Solomon, Goldman Sachs CEO, the stock exchanges must be a “disadvantage” after the highest records in one or two years in one or two years.

“Markets work as a loop and when we have a significant momentum in a new technology, which creates a lot of capital, and therefore, many interesting new companies around you, you can often work in front of the potential … There will be winners and losing,” Tourin, Italy said.

Solomon pointed out 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 found that investors lost money to things known as “Dotcom Balloon”.

“You will see a similar phenomenon here,” he said. He continued: “In the next 12 to 24 months, I would not be surprised if we see a disadvantage of stock markets … I think there will be too much capital that will not bring returns and people will not feel good.”

In recent years, an AI explosion has kept global markets with a series of new technology, multibillion-dollar agreements and the constant rise of Chatgpt-Developing Openai. It is seen that investors have bets on technology and spilled into stocks such as capital. Microsoft– Alphabet– Palantir And Nvidia.

The buzzing around the artificial intelligence, although the US’s major averages fell by President Donald Trump’s trade policies earlier this year, helped to break high records of Wall Street and beyond. However, as investors continued to look for opportunities in AI, even worried about the possibility of explosion somewhere.

“I will not use the word bubble, because I don’t know what the road will happen, but I know that people are at the risk curve because they get excited.” He said.

“And when [investors are] They tend to think about the exciting, good things that can go right and reduce things you need to be skeptical about … There will be a reset, there will be a control at some point, there will be a disadvantage. The scope of this will depend on how long this lasts [bull run] Going, “he added.

Solomon is not alone in concern about existing market levels. Speaking at the same event, Amazon founder Jeff Bezos said on Friday, artificial intelligence is currently “in an industrial bubble,” he said.

And at the beginning of this week, Leon Cooperman, an experienced investor, told CNBC that we were in the late Innings of a bull market where bubbles could occur – Warren Buffett warned.

Meanwhile, Selwood Asset Management’s chief investment manager of the stocks, Karim Moussalem warned “enormous risks” on the horizon for AI trade that can be solved rapidly. “Artificial intelligence trade begins to resemble one of the major speculative manias in the history of market history,” Moussalem runs a market independent self -strategy on the London -based Hedge fund. He said. Shipment in LinkedIn.

However, while Solomon predicted that some money would be lost, he seemed optimistic about artificial intelligence.

“I sleep very well. I won’t worry about what’s going to happen every night,” Solomon said on Friday. “In general, if you talk, the creation of new companies and the potential of this technology placed in the business can be very, very strong. So, an exciting time.”

– CNBC’s Hugh Leask and Yun Li contributed to this report