Goldman Sachs CEO says he expects a 'reopening' in capital markets next year

Goldman Sachs CEO David Solomon said Thursday that helium expects superior markets to retrieve successful the upcoming months.

"I deliberation what we're going done astatine the infinitesimal is simply a reset of valuation expectations," helium said successful an interrogation with CNBC's Jim Cramer. "In the coming months, we'll spot a small spot of a reopening successful the superior markets erstwhile radical get utilized to this valuation adjustment."

While a low-interest complaint situation allowed newly-minted companies to thrive and spot their valuations swiftly balloon during the pandemic's aboriginal stages, the archetypal nationalist offerings marketplace nosedived this year. U.S.-listed companies raised $4.8 cardinal successful proceeds during the archetypal fractional of 2022 compared to $155 cardinal successful 2021, according to EY and Dealogic.

The main culprits see soaring inflation, the Federal Reserve's interest-rate hikes, Russia's penetration of Ukraine and Covid lockdowns that drove investors retired of risky, precocious maturation bets and into safer, defence stocks. 

While those headwinds proceed to persist, Solomon says the marketplace is adjusting to its caller reality.

"There's ever a backlog of companies that request to spell public," helium said. "We're 3 quarters into a much hard superior markets environment. History would archer you, three, four, five, six quarters you get that readjustment."