Goldman Sachs (GS) CEO David Solomon expects the stock market’s slide to continue in 2023 and thinks the odds of a recession hitting the U.S. economy are about 2-out-of-3.
Speaking at the Wall Street Journal’s CEO Council Summit on Tuesday, Solomon said he expects stocks will be lower, along with oil and real estate (both commercial and residential), while the U.S. dollar is poised to rise slightly next year.
Meanwhile, Solomon placed the probability of a “soft landing” — or a slowdown in inflation that doesn’t tip the economy into recession — for the U.S. economy at only 35%.
“I would define a soft landing as we get inflation back close to 4% inflation, maybe we have a 5% terminal rate and we have 1% growth,” Solomon said. “I think there’s a reasonable possibility we could navigate a scenario like that.”
“But I also think there’s a very reasonable possibility that we could have a recession of some kind,” Solomon added.
David…
