Goldman Sachs CEO: In our era, greed far outweighs fear, and capital is readily available.

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Wall Street is immersed in a rare wave of optimism. Goldman Sachs CEO David Solomon stated bluntly that the current financial market is “greed far outweighing fear,” and investors are ignoring risks such as high valuations, high oil prices, and rising inflation, continuously pushing stock prices to new highs.

Solomon made these remarks Tuesday at the Economic Club of New York, saying that as long as global optimism continues and “there’s ample liquidity in the system,” the market is fully capable of digesting upcoming IPOs of unprecedented scale from tech giants like SpaceX, OpenAI, and Anthropic. He emphasized that it’s precisely because capital is so accessible that companies with financing needs are flocking to the market.

His comments reflect the overall bullish atmosphere currently prevailing on Wall Street. The S&P 500 last month set a closing record high during half of all trading days, breaking records a total of 11 times. Meanwhile, the Nasdaq Composite Index has soared 30% since the end of March, and last week the S&P 500 posted its longest streak of consecutive weekly gains since December 2023.

Greed overwhelms fear—Market sentiment reaches a tipping point

Solomon frankly admitted in his speech that these words would inevitably be widely quoted, but he believes this is a true depiction of today’s market. “We are indeed at a moment when greed far outweighs fear,” he said. “That’s why those who need capital are coming to the market—because the capital is there.”

He also issued a warning, noting that market sentiment “can swiftly turn to fear,” and reminding investors not to take the current optimism lightly.

Solomon is optimistic about artificial intelligence and the macro economy overall. He predicts that, with continued progress in AI technology over the next decade, the United States will have “an extremely productive economy” and achieve low unemployment rates.

Alphabet’s biggest equity financing in history as a market litmus test

Solomon cited the calm market reaction following Alphabet’s announcement of an $80 billion equity financing as proof of the market’s strong capacity to absorb large-scale fundraising. After the news was released, Alphabet’s share price fell only around 2% that day.

“This is the largest equity deal ever, the largest follow-on offering, and the stock performance was quite stable,” Solomon said. “It’s the first real data point for pushing a transaction of this scale to market, which is encouraging.”

He believes that this case provides important reference for the upcoming IPO wave of tech giants, showing the market can digest ultra-large fundraising.

AI investment boom drives explosion in tech stocks

The AI investment wave is the core driver of this round of market gains. Memory manufacturer SanDisk has surged about 630% so far this year, leading the market; semiconductor maker Micron, server vendor Dell, and chip manufacturer Intel have risen by 265%, 250%, and 191%, respectively, in the same period.

The Nasdaq Composite Index’s 30% rise since end of March has mainly been driven by semiconductor and storage companies, with software stocks rebounding strongly from early-year sell-offs.

Morgan Stanley Wealth Management Chief Investment Officer Lisa Shalett wrote in a research note this week: “The S&P 500’s 5% correction in the first quarter now seems like a distant memory.”

An IPO feast approaches—Goldman Sachs bets on largest listing wave ever

Solomon was asked in his speech whether the market can accommodate upcoming mega IPOs from tech companies like SpaceX, OpenAI, and Anthropic. He stated that these listings would be “the largest IPOs ever,” and Goldman Sachs hopes to play a major role in them.

In his view, the successful completion of Alphabet’s financing provides an initial verification for the feasibility of this IPO feast. However, he also hinted that everything hinges on “the world continuing to stay this optimistic”—a condition that is itself not guaranteed.

Risk Disclaimer and Exemption ClauseThe market carries risks, and investing should be done cautiously. This article does not constitute personal investment advice and does not take into account individual users’ unique investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their own circumstances. Investing based on this article is at your own risk. ```