"Speaking on the Goldman Sachs Exchanges podcast on Jan. 20, ahead of his trip to Davos, Solomon described a business landscape defined by a sharp dichotomy. On one side, the macroeconomic setup for 2026 is "pretty good for risk assets and for markets," fueled by a "confluence of very stimulative actions," including monetary easing and a massive capital investment boom in AI infrastructure. On the other, executives are grappling with anxiety about inconsistent policymaking and geopolitical "noise.""
""They're concerned about the amount of noise outside of Washington," he said. "They're concerned about, for lack of a better term, the kind of shotgun approach to policy that's not as consistent as they'd like." Allowing that it is consistent on (de)regulation, it's not as consistent on other things. "Candidly," he added, "I think they'd like to see less noise and more focus on opportunities for growth, because that's what CEOs want.""
"Solomon's most bullish forecast centers on a resurgence of mergers and acquisitions, driven by a radical shift in the regulatory climate. For the past four years, Solomon noted, when CEOs asked regulators if a deal was possible, "it didn't matter what the question was. The answer was no." Now, in a deregulatory environment that Solomon describes as "quite stimulative for investment and growth," corporate leaders are becoming more forward-thinking."
The macroeconomic setup for 2026 is favorable for risk assets and markets, supported by monetary easing and a large capital investment boom in AI infrastructure. Corporate leaders plan substantial investment if policy signals become more consistent and less noisy. Executives express anxiety about inconsistent policymaking, a perceived 'shotgun approach' to policy outside of (de)regulation, and geopolitical noise, and they prefer greater focus on growth opportunities. A deregulatory shift has made mergers and acquisitions more attractive after years of regulatory resistance that blocked deals. Unless a major exogenous event significantly shifts sentiment, a resurgence of M&A and record investment activity is likely in 2026.
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