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Feb 13, 2026
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LONG
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"I think a lot of deal activity... I think we're going to see more IPOs this year... potentially some very very large IPOs." Plus, "huge deregulatory swing... resources can be freed up." Investment banks generate significant fees from M&A and IPO underwriting. A return of "deal activity" directly boosts revenue. Additionally, deregulation lowers compliance costs and capital constraints for large banks. LONG Investment Banks as the primary beneficiaries of the reopened capital markets and regulatory relief. Deal activity stalling due to geopolitical shocks or interest rate volatility. |
CNBC
Goldman Sachs CEO David Solomon: The macro se...
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Feb 13, 2026
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LONG
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"You have a pretty significant capital investment surge around AI and this technology, which is obviously... very stimulative to the economy." Solomon identifies AI capex as a core pillar of the current economic strength. Continued "surge" in investment implies sustained revenue for the AI infrastructure and technology value chain. LONG AI Sector to align with the massive capital deployment cycle Solomon describes. Overinvestment leading to a capex trough if ROI disappoints. |
CNBC
Goldman Sachs CEO David Solomon: The macro se...
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Feb 13, 2026
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LONG
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"Smaller IPOs require... more discount... smaller companies it's always more attractive to sell a company for 100% of its value and get that cash today privately." While the IPO market is opening for large caps, Solomon notes that small companies are better off selling privately. This dynamic feeds deal flow to Private Equity firms and alternative asset managers who act as the buyers/consolidators in private markets. LONG Private Equity managers (like Blackstone/KKR) who benefit from robust private market transaction volume. Higher interest rates impacting leverage costs for private deals. |
CNBC
Goldman Sachs CEO David Solomon: The macro se...
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Feb 13, 2026
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WATCH
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"I have real concern for the continued level of deficit spending... if we don't get it under control... speed bumps or shocks." Solomon warns that while the bond market is currently benign due to a lack of alternatives to the dollar, spiraling deficits create a long-term risk of market "shocks" (yield spikes). WATCH Treasuries for signs of the "speed bumps" Solomon predicts if growth does not outpace debt. A sudden loss of confidence in US fiscal sustainability could spike yields rapidly. |
CNBC
Goldman Sachs CEO David Solomon: The macro se...
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Feb 13, 2026
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LONG
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"The macro setup is quite good... you have this combination of strong fiscal stimulus... capital investment surge around AI... huge deregulatory swing." Solomon outlines a "constructive environment" with three major tailwinds (Stimulus, AI Capex, Deregulation) and forecasts 2.9% real GDP growth. This combination historically drives equity market performance. LONG US equities to capture the forecasted growth and favorable policy environment. Inflation reigniting due to stimulus; failure of AI capex to generate returns. |
CNBC
Goldman Sachs CEO David Solomon: The macro se...
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