Overview
- Goldman Sachs CEO David Solomon said equities are likely to see a 10%–20% drawdown within 12–24 months and described tech valuations as full while advising clients to stay invested and review allocations.
- Morgan Stanley CEO Ted Pick said 10%–15% declines should be expected and characterized such pullbacks as healthy rather than crisis-driven.
- U.S. equity futures fell after the remarks, with the VIX hovering near a recent high as investors reacted to the caution from the bank leaders.
- The comments follow a year of record-setting, AI-led gains and echo broader warnings from institutions and executives, including the IMF and JPMorgan’s Jamie Dimon, about elevated risk.
- Both banks highlighted Asia as a multi-year opportunity, citing interest in Hong Kong, China, Japan, and India.