The freefall in tech and other growth stocks shows Wall Street grappling with 'the revenge of the old economy', Goldman Sachs commodities chief says

  • The plunge in tech and growth stocks is the “revenge of the old economy,” Goldman Sachs’ commodities said.
  • Jeff Currie pointed to prior underinvestment in energy and industrials, which has led to supply issues that are fueling problems 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,” according to 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 results or offer disappointing guidance. In contrast, 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 said in an interview with CNBC on Thursday. 

He said poor returns on the old economy over the past decade had shifted capital to the tech and growth sectors, leading to underinvestment in energy and industrials that has led to supply problems today.

Additionally, oil and other commodities are considered late-cycle assets, meaning the effect of Fed rate hikes will have a delayed impact on the old economy compared to tech and growth stocks, Currie said. 

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

Given that oil supercycles in the 1970s and the early 2000s lasted that long, he estimated the current supercycle for oil that started in 2020 could last past 2030.

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