Greed is outpacing fear in world financial markets as investors respond to the pandemic recovery, Goldman Sachs chief executive David Solomon said.<\/p>\n
Goldman Sachs Group CEO David Solomon said that markets may face a difficult time in the future, as the global economy seeks to emerge from the sudden impact of the pandemic.<\/p>\n
“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 far outpaced fear,” Solomon told the Singapore event.<\/p>\n
“We were in one of those periods of time and generally speaking, my experience says that, you know, those periods are not long-lived.” Solomon said the expectation of rising interest rates could reduce the heat in some asset markets.<\/p>\n
Global markets rallied during the Coronavirus pandemic, spurred by massive stimulus that also boosted profits at banks such as Goldman Sachs.<\/p>\n
Concern is now growing that accelerating inflation will pose a challenge to a sustainable recovery as it may have to
\nCentral banks to raise interest rates to absorb this wave.<\/p>\n
\u201cChances are interest rates will move up and that will take some of the exuberance out of certain markets,” he said.<\/p>\n
Goldman is at the forefront of a campaign by global banks to gain a bigger foothold as the Chinese market opens, and is battling to reap billions of dollars in potential profits.<\/p>\n
Last month, the group obtained approval to acquire full ownership of a 17-year joint venture in securities brokerage.<\/p>\n
The company plans to double its workforce in China to 600 and increase its asset and wealth management base.<\/p>\n
“\u201cI think China wants to grow its capital markets, they want more listing activity in Hong Kong and onshore,\u201d Solomon said.<\/p>\n
The participation of global institutions \u201cstrengthens their capital markets and so my guess is they’ll continue to support that, but the world can change,\u201d he said.<\/p>\n