Home / Business and Economy / CEOs Ready to Invest Billions, Demand Policy Clarity
CEOs Ready to Invest Billions, Demand Policy Clarity
23 Jan
Summary
- CEOs plan record investment contingent on Washington reducing policy unpredictability.
- Goldman CEO predicts 2026 could be a top year for M&A activity.
- The US economy shows stronger growth than Europe's due to better capital formation.
Goldman Sachs Chairman David Solomon reports that global business leaders are prepared to initiate record-breaking investments, but they require greater policy consistency from Washington. Speaking ahead of the World Economic Forum in Davos, Solomon noted that while macroeconomic conditions are favorable for markets in 2026, executive sentiment is dampened by policy "noise" and unpredictability.
Solomon anticipates a significant resurgence in mergers and acquisitions, potentially making 2026 one of the best years for M&A activity, especially within a deregulatory environment. He also foresees a "mega-cycle" for IPOs as private equity portfolios seek exits. However, this optimism is tempered by CEO concerns over a "shotgun approach" to policy implementation.
Furthermore, Solomon highlighted a growing economic disparity between the United States and Europe. He described Europe's trend growth as structurally below 1%, contrasting sharply with the U.S.'s 2% trend growth, attributing the gap to the U.S.'s advantages in capital formation and technological infrastructure. The primary risk to this economic trajectory, he warned, remains unpredictable exogenous events.
