Goldman Sachs Chairman and CEO David Solomon said he’s concerned about the intense demand from retail investors in recent initial public offerings.

Solomon says he is personally concerned about euphoria in the IPO market, but says many great companies with extraordinary prospects will continue coming to market.

“I do think we’re in a moment in time where there’s a lot of euphoria. I personally am concerned about that,” Solomon said on CNBC. “I don’t think in the long run that’s healthy. I think it will rebalance over time, as it always does,” he said.

Solomon’s comments follow the recent IPOs of DoorDash and Airbnb, two companies that saw massive spikes in their stock on their first day of trading.

Goldman isn’t advising investors to hold off on pursuing IPOs. Solomon says the IPO market has been pricing in “perfect execution and enormous growth for a very long period of time,” and expects a rebalancing over time.

Meanwhile, Solomon says the economy “still has a way to go,” but there has been a meaningful recovery.

“We see the light at the end of the tunnel,” Solomon said.

Solomon says the Federal Reserve's monetary policy in light of the pandemic proved “very, very necessary.” Solomon says some investors are taking on more risk, and such tactics are inflating some asset prices.

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