Goldman Sachs CEO David Solomon tells investors markets are in “greed mode,” cites capital liquidity

Goldman Sachs CEO David Solomon delivered a blunt assessment of Wall Street’s mindset on June 2, telling an audience at the Economic Club of New York that markets are being driven more by returns than by fear of risk. In remarks reported by Reuters, Solomon said, “We are definitely in a moment where there’s more greed than there is fear,” adding that companies looking to raise capital are finding it available and that liquidity is sufficient to absorb major offerings.

Solomon’s comments landed as the market prepares for a wave of very large initial public offerings associated with artificial intelligence and technology. Reuters reported that when asked about the potential impact of those mega IPOs, Solomon argued the funding backdrop is supportive, saying there is enough capital “for what we’re talking about at this flow at this point.” The same Reuters report referenced SpaceX’s plan to target a valuation of $1.75 trillion in its IPO, and noted that other AI-related listings expected to follow could significantly increase the amount of stock newly offered to the public markets.

In addition to the “greed” framing, Solomon offered a practical message to companies considering fundraising now: when capital is available, borrowers that need funds should not wait. Reuters reported Solomon’s line that, “When capital’s available, if you’re capital consumptive and it’s available, take the capital.” He also suggested that periods of high enthusiasm can last longer than skeptics expect, saying that “exuberance can go on for big periods of time.”

Solomon also linked market psychology to the macroeconomic environment, particularly inflation pressures tied to energy prices. Reuters reported he expects consumer behavior to shift in the second half of 2026 if inflation picks up, a view connected to higher oil prices. The report said U.S. inflation accelerated at its fastest pace in three years in April, attributed to higher energy prices tied to the Iran war, and that Solomon’s comments reflected expectations that the Federal Reserve could hold rates unchanged well into next year.

The CEO said he has “enormous confidence” in the Federal Reserve and its leadership, including the reported involvement of the new chair, Kevin Warsh. Separately, TheStreet reported that Solomon chose his words carefully during the Economic Club question-and-answer, pausing before answering and noting he knew what he was about to say would be quoted.

For Goldman Sachs itself, the relevance is straightforward: in a market environment where companies are actively raising capital, investment banks tend to see more engagement across advisory, underwriting, and other capital markets services. Goldman’s investor relations materials describe its strategy as centered on “Global Banking & Markets” alongside “Asset & Wealth Management,” underscoring that major corporate financing activity is central to its business model.

What remains unclear from the public remarks is the degree to which Solomon sees valuations as stretched versus simply supported by liquidity. He did not provide a concrete forecast for equity prices or a specific timeline for when “greed” could reverse. The comments also did not detail how Goldman’s own participation, if any, aligns with any particular IPO or secondary offering structure. For investors, the key takeaway is less a single “buy” or “sell” announcement and more a view that the supply of capital is currently strong even as underlying risks, like oil-driven inflation, could still reappear.