Gerstner argues normalized valuations mean 2024 won't match easy returns of early 2023.
“So that's the big thing. The world is normalized. Multiples have normalized. It's not gonna be as easy as it was at the start of '23.”
Gerstner notes Fed raised 2024 GDP forecast from 1.1% to 1.5% despite worsening real economy conditions.
“The Fed forecast in June of this year for GDP growth for 2024 was 1.1%. Today, the Fed forecast for GDP growth in 2024 is 1.5%.”
Gerstner forecasts 5-7 good-sized IPOs in Q4 2023 and closer to 10 in Q1 2024.
“I think we're gonna see five, six, seven IPOs, good sized IPOs in q four. We'll probably see closer to 10 in q one,”