Goldman Sachs Forecasts Strong Performance in Private Markets for 2024

 **Navigating Investment Strategies: Insights from Goldman Sachs**

In the realm of investment, David Bollinger, a prominent figure at Goldman Sachs, underscores a fundamental principle: "Stay invested." This remains his top advice to Goldman's clients, emphasizing resilience even in challenging economic times. Reflecting on 2023, Bollinger points out the US equity market's remarkable 25% rise despite global economic concerns, including high inflation and elevated borrowing costs affecting various sectors.

Bollinger acknowledges the difficulty of pinpointing favorable investment periods, highlighting the paradox where years perceived as challenging, like 2008-2009, turned out to be excellent for private equity. He expresses optimism about the US market's potential for further growth.

Delving into the realm of artificial intelligence (AI) investments, Bollinger emphasizes the need to assess when and how AI technology can enhance productivity and its resultant impact. Citing a Goldman Sachs report, he notes that generative AI could potentially boost global GDP by 7%. The key consideration is the timeline for these transformations, with Bollinger drawing attention to the historical trend where unexpected players often emerge as winners in the tech sector.

In the context of evolving investment landscapes, Bollinger discusses the current stance on Environmental, Social, and Corporate Governance (ESG). He observes a shift in priorities, acknowledging that ESG has slightly receded in some investors' focus due to geopolitical uncertainties. However, he sees this as a positive development, emphasizing a more impactful and commercially oriented approach in addressing global challenges compared to previous efforts.

While geopolitical uncertainties have made commodity markets highly volatile, Bollinger suggests keeping an eye on them as part of investors' tactical perspectives. Despite the challenges, he notes a lower risk of price shocks compared to certain historical events, with energy security taking center stage.

In summary, Bollinger's insights provide a nuanced understanding of the investment landscape, advocating resilience, strategic consideration of AI opportunities, and a recalibration of focus on ESG with a commercial impact.