Morgan Stanley And Goldman Sachs CEOs Warn Of Likely Market Correction

Morgan Stanley CEO Ted Pick and Goldman Sachs CEO David Solomon warned that a market correction is likely, even as they remain positive on the overall cycle. Speaking at Hong Kong’s Global Financial Leaders’ Investment Summit, they said equity indices could experience a 10–20% drawdown within 12–24 months. While the S&P 500 has risen more than 15% this year following steady gains since April, the executives noted that elevated technology valuations and the strong run in precious metals could prompt consolidation. Both leaders argued that broader market multiples are not excessively stretched and that any correction would be healthy for long-term growth. Addressing AI trends, they anticipated uneven outcomes across sectors. In Asia, they highlighted opportunities in China, governance-led gains in Japan, and policy-driven growth in India, positioning Hong Kong as a regional beneficiary of this cycle.