Cautious Optimism in the Snows of Davos

Those following coverage of the World Economic Forum in Davos might be tempted to think there’s little reason for optimism about the state of our economy, companies and markets. This year’s theme, “Cooperation in a Fragmented World,” leans directly into the myriad of challenges that face us.

However, I’ve found the opportunity to speak with fellow attendees and panelists – many of them leaders of NYSE-listed companies – to be nothing short of inspiring. Despite very real issues like the prospect of slowing economic growth, inflation and geopolitical uncertainty, the engine of global innovation continues to fire. Leaders are clear-eyed about the issues that face us yet unwavering in their mission to deploy innovative yet practical solutions. 

Economies and markets move in cycles, and we will eventually push past the issues of today to unleash the growth of tomorrow.

At the beginning of 2023, I shared with you 6 pillars that embody what we stand for at the NYSE: capital, innovation, opportunity, sustainability, transparency and community. These are all terribly relevant to how we look to the future from our current vantage point. A few examples:

Here in the snows of Switzerland, the transition to clean energy has been a big topic of conversation, particularly amid the volatility in energy prices Europe has experienced. NYSE parent Intercontinental Exchange operates leading energy markets around the world, and as we have learned from experience it is the transparency inherent in these markets that gives companies the ability to manage risk through all aspects of the clean energy transition.

During my panel Tuesday on innovation in finance, we touched on the well-publicized challenges facing the crypto space. While this has been a difficult moment for investors and others in that ecosystem, the technologies central to these currencies are sophisticated and powerful and likely have other applications that can yield broad benefits. Instead, it is the regulatory framework around it that needs some attention as the underpinnings of traditional market structures show resilience and stability despite extreme price volatility.

Finally, during media interviews from the rooftop of the Davos Congress Centre I’ve been asked about the IPO market, which has been slowed by market volatility, among other things. Journalists wonder when it will once again return to a robust level of activity. While timing is a reasonable question, the more important point is the large pipeline of companies waiting to go public and the enormous amount of collective innovation they represent. It’s not so much when they will tap the public markets that matters, but what they will be able to accomplish once they arrive.

I began serving as NYSE president last January and I could not have imagined then what a year it would be. We discussed a number of pressing issues during my first Davos in May 2022 and that list, if anything, has expanded in the 2023 edition. During this year, though, I’ve also been able to see firsthand the remarkable quality of our NYSE community – where we always want to be the first call for our CEOs – and those companies waiting to join us. 

With that knowledge, I will bid farewell to my second Davos, clear-eyed about the challenges ahead but optimistic about the innovations that will address these challenges. Until next year…