Goldman Sachs CEO Sees a Good Chance of Recession

He Advises Investors to Be Cautious
Investors should Prepare for More Difficult Environment
Goldman Sachs profits fell by 43%

David Solomon, chief executive officer of Goldman Sachs, predicts a recession in the United States. He emphasized that you’ve got to be cautious and prepared for the environment heading into 2023.

In an interview with CNBC on Tuesday, Goldman Sachs CEO David Solomon issued a warning regarding the direction in which the U.S. economy is headed. He also advised investors to exercise caution.

He stated that if you run a risk-based business, he believes it’s a good time to be cautious and thinks more carefully about your risk box and risk appetite.

Goldman Sachs’ Revenue dropped by 12% to $11.98 billion

The Goldman CEO went on to say that he thinks you have to expect that there will be more volatility on the horizon now. That does not necessarily imply that our economic situation is extremely challenging.

However, based on the distribution of outcomes, there is a good chance that the United States will experience a recession. Nevertheless, the executive remarked: In fact, nothing fundamental changes. Although the leadership shifts positions, they remain the same.

Solomon elaborated on the need for investors to be aware of the obstacles that lie ahead, stating that you need to be careful and prepared for that environment as 2023 approaches.

He warned that asset appreciation will be tougher in an environment where inflation is more embedded and growth is slower. Are they going to become entangled in a scenario that lasts a decade?

The head of Goldman Sachs went into detail about how energy and immigration policies will have a big impact on where the US economy goes. He concluded that he believes that if you are a risk manager now, you must prepare for a more challenging environment in 2023.

ALSO READ: U.S. Inflation Is Sticky At 8.2%

98% of CEOs said they are preparing for a U.S. recession

Tuesday saw the release of Goldman Sachs’ earnings results for the third quarter. Even though profit decreased by 43% to $3.07 billion, or $8.25 per share, it was still higher than the $7.69 estimate that Refinitiv surveyed analysts. Furthermore, revenue decreased by 12 percent to $11.98 billion.

He affirmed that they are confident that our strategic evolution will drive higher returns that are more durable and unlock long-term value for shareholders.

Jamie Dimon, Solomon’s JPMorgan Chase counterpart, recently issued a warning that the U.S. economy may experience a recession in six to nine months. According to a recent survey, 98% of CEOs said they are preparing for a recession in the United States. However, President Joe Biden is not concerned, claiming that the economy is “strong as hell” over the weekend.

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