By Admin 
Stock market outlook: David Solomon, CEO of Goldman Sachs, has warned of a decline in the stock market in the coming months. According to the CNBC report, Solomon says that due to the increasing impact of Artificial Intelligence (AI), investors may suffer losses due to the decline in the stock market in the coming time.
Investors will suffer loss
Due to AI, the stock market reached a record high level in recent times, but in the next one or two years some investors will suffer. However, some will also be in profit. Speaking at the Italian Tech Week in Turin, Italy on 3 October, Solomon, while referring to the dotcom bubble of the early 2000s, gives a chance to look and understand the boom in the AI market.
There will be a decline in equity market
He said, “Markets go in cycles. Whenever a new technology comes out, a large amount of capital is created. Many new companies have emerged around this. This leads to the market far more than its capacity- both of them will win and losers. ”
He further said that the rapid growing use of the Internet in the late 1990s and early 2000s revealed many companies in the technology field, but it also produced’.com Babal ‘. Solomon said, “I will not be surprised if you get to see something similar this time. In the next 12 to 24 months we will see a decline in the equity market.
Reset will be market
Solomon further said that he abstains from calling AI Boom a ‘bubble’, but he warned the investors, “I will not use the word bubble because I don’t know what will happen next, but I know that people are ready to take risks because they are excited and when investors are excited, they think about the good things that they can do and they give less.
He said that the market will be reset and there will be a decline. However, for how long this period of decline will last, it will depend on how long this bull run lasts. Overall, the good thing is that technology is moving forward, new companies are being formed. The use of this technique in the enterprise can be very powerful, so it is an exciting time.
Also read:
The IPO of Tata Capital is opening tomorrow, know how strong and stable the company is before betting?