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The freefall in tech and other growth stocks shows Wall Street grappling with ‘the revenge of the old economic system’, Goldman Sachs commodities chief says

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  • The plunge in tech and growth stocks is the “revenge of the old economy,” Goldman Sachs’ commodities talked about.
  • Jeff Currie pointed to prior underinvestment in energy and industrials, which has led to offer factors that are fueling points now.
  • “All of the earnings coming out confirm this idea: the revenge of the old economy. Tech: missing substantially.”

The freefall in tech and other growth stocks shows that Wall Street is grappling with the “revenge of the old economy,” in accordance with Goldman Sachs commodities chief Jeff Currie.

That comes amid an earnings season that has seen the likes of Tesla, Microsoft, Alphabet and Meta report weak quarterly outcomes or present disappointing steering. In distinction, energy and industrial companies have largely reported upbeat numbers.

“All of the earnings coming out confirm this idea: the revenge of the old economy. Tech: missing substantially. You look at the energy names: all surprising to the upside,” Currie talked about in an interview with CNBC on Thursday. 

He talked about poor returns on the old financial system over the earlier decade had shifted capital to the tech and growth sectors, ensuing in underinvestment in energy and industrials that has led to offer points as we communicate.

Additionally, oil and other commodities are thought of late-cycle belongings, which suggests the influence of Fed worth hikes might have a delayed impression on the old financial system in comparability with tech and growth stocks, Currie talked about. 

The commodities bull has been saying a model new supercycle is underway and well-known that prior supercycles have lasted about 12 years. 

Given that oil supercycles in the Seventies and the early 2000s lasted that prolonged, he estimated the current supercycle for oil that started in 2020 would possibly last earlier 2030.

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