Goldman CEO David Solomon Warns Of Stock Market ‘Drawdown’ Over Next 2 Years, Similar To ‘Dotcom Bubble’ Era: Report

Speaking at the Italian Tech Week on Friday, Solomon stated that markets surge higher than their potential when the acceleration of a new technology creates significant capital formation.
David Solomon, CEO of Goldman Sachs, testifies during a Senate Banking Committee hearing at the Hart Senate Office Building on December 06, 2023, in Washington, DC.
David Solomon, CEO of Goldman Sachs, testifies during a Senate Banking Committee hearing at the Hart Senate Office Building on December 06, 2023, in Washington, DC. (Photo by Win McNamee/Getty Images)
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Rounak Jain·Stocktwits
Updated Oct 03, 2025   |   9:19 AM GMT-04
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Goldman Sachs Group Inc. (GS) CEO David Solomon reportedly warned on Friday that a stock market “drawdown” is looming and could occur over the next 12 to 24 months.

According to a CNBC report, Solomon said at the Italian Tech Week on Friday that markets usually surge higher than their potential whenever there is a “significant acceleration in a new technology that creates a lot of capital formation, and therefore lots of interesting new companies around it.”

He pointed to the creation of some of the world’s largest companies during the 1990s and 2000s due to the adoption of the internet, but also noted that it led to the “dotcom bubble.”

“You’re going to see a similar phenomenon here. I wouldn’t be surprised if in the next 12 to 24 months, we see a drawdown with respect to equity markets … I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns, and when that happens, people won’t feel good,” Solomon added.

According to the report, Solomon said that investors are “out on the risk curve because they’re excited.” When that happens, they tend to lean toward the positive aspects that can go right and overlook the factors about which they should be skeptical, he said. “There will be a reset, there will be a check at some point, there will be a drawdown. The extent of that will depend on how long this [bull run] goes,” he added.

Meanwhile, U.S. equities edged up in Friday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.09%, while the Invesco QQQ Trust (QQQ) rose 0.1%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

Also See: Scott Bessent Reportedly Says Government Shutdown Could Hit US GDP: 'This Isn’t The Way To Have A Discussion'

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