CEOs are optimistic but anxious: David Solomon’s Davos take on deregulation and ‘shotgun’ policy

As global business leaders gather in the Swiss Alps for the annual World Economic Forum, Goldman Sachs Chairman and CEO David Solomon has shared a clear assessment of current corporate sentiment: Chief executives are poised to roll out record levels of investment—provided Washington can reduce the “shotgun approach” to policy that he cites as a source of noise.

Speaking on the on Jan. 20, ahead of his journey to Davos, Solomon characterized the business landscape as marked by a sharp contrast. On one hand, the 2026 macroeconomic environment is “fairly favorable for risk assets and markets,” driven by a “combination of highly stimulative measures”—including monetary easing and a massive surge in capital investment for AI infrastructure. On the other, executives are struggling with unease over inconsistent policy decisions and geopolitical “noise.”

“They’re worried about the level of noise coming from outside Washington,” he stated. “They’re concerned about, for lack of a better phrase, the kind of shotgun-style policy that isn’t as consistent as they’d prefer.” While acknowledging consistency in (de)regulation, he noted it’s less consistent in other areas. “Frankly,” he added, “I believe they want to see less noise and more emphasis on growth opportunities—because that’s what CEOs prioritize.”

The return of the deal

Solomon’s most optimistic prediction centers on a rebound in mergers and acquisitions (M&A), fueled by a dramatic change in the regulatory landscape. For the past four years, Solomon noted, when CEOs asked regulators if a deal was feasible, “the question didn’t matter— the answer was always no.”

Now, in a deregulatory climate that Solomon describes as “quite supportive of investment and growth,” corporate leaders are adopting a more forward-looking mindset. “Unless a major exogenous event significantly alters sentiment,” Solomon forecasted, “2026 could be one of the strongest M&A years on record.” His optimism also applies to the initial public offering (IPO) market: private equity portfolios, which were marked up during the 2020 and 2021 boom years, are finally preparing to go public as public markets recover.

Solomon’s remarks echoed those of Kim Posnett, Goldman Sachs’ co-head of investment banking, who predicted an IPO “mega-cycle” in a earlier this week. She also pointed out that the M&A market has moved from 2025’s recovery phase to a “bold and strategic” state, with last year’s $5.1 trillion in volume representing a 44% increase from 2024.

The ‘shotgun’ anxiety

However, Solomon emphasized that CEO optimism is balanced by frustration over how the new administration is implementing policies. While CEOs support deregulation, they are unsettled by the unpredictability of other government actions. Solomon highlighted concerns about a “shotgun approach to policy that isn’t as consistent as they’d like.” For those unfamiliar with the term, a “shotgun approach” refers to how shotguns fire multiple small pellets that spread out—boosting the odds of hitting a moving target compared to a rifle’s single bullet aimed at one target.

“When there’s stability, CEOs become very optimistic and forward-looking,” Solomon observed. “When there’s noise and uncertainty, they’re more cautious.” He specifically referenced recent headlines about “Greenland and tariffs in Europe” as examples of geopolitical tensions that prompt capital to stall. “These kinds of issues will create uncertainty. And when uncertainty arises, you’ll see pullbacks, step backs, or pauses.”

The widening transatlantic gap

Solomon also brought a sobering message to his European peers as he traveled to Davos: the economic divide between the United States and Europe is expanding.

“Europe, in my view, has much lower structural growth,” he said, noting that while European leaders frequently discuss advancing a more constructive regulatory framework, a growth-focused agenda, and a more capital markets and finance-friendly approach, “they’ve been extremely slow to put these plans into action.” Just look at the growth figures, he added.

“Europe’s trend growth is below 1%,” Solomon explained, noting that with roughly 450 million people, Europe has an economy of around $20 trillion and trend growth of less than 1%. The U.S., by contrast, has about 330 million people, a $30 trillion economy, and trend growth of 2%.

“That gap between the U.S. and Europe will keep growing,” he predicted, attributing the difference to the U.S.’s stronger capital formation processes and tech infrastructure. Days later, President Donald Trump would make similar points—along with —in a main stage Davos speech that was met with occasional groans and laughter.

Despite the positive fundamentals, Solomon said he remains watchful for risks that can’t be quantified in spreadsheets. The main threat to the 2026 economic path, he warned, is an “exogenous event” stemming from geopolitics, cyber threats, or unexpected shocks.

“I think the biggest risk to halting the economic trajectory is some kind of exogenous event,” Solomon concluded. “These come from large, unforeseen idiosyncratic events that we can’t predict in advance.”