Goldman Sachs CEO says AI boom could feed stock market drawdown

Core Viewpoint - The stock market is expected to experience a "drawdown" in the next 12 to 24 months as the results from a significant investment cycle in AI begin to materialize, leading to a differentiation between winners and losers in the market [1][3]. Group 1: Market Dynamics - Historical patterns indicate that significant technological advancements often lead to a market that runs ahead of actual potential, resulting in a cycle of capital formation and the emergence of new companies [2]. - The investment cycle in AI is anticipated to follow a similar trajectory to the Dot.com boom, where many companies will not survive, with only a few, like Amazon, emerging as long-term winners [3]. Group 2: Investment Sentiment - Current market excitement is driving investors to take on more risk, often overlooking potential downsides [3]. - While the potential of AI is recognized as "very, very powerful," there is an expectation of a market "reset" at some point, the timing of which will depend on the duration of the current investment cycle [3].