Wall Street CEOs Warn of Market Pullback From Rich Valuations

Wall Street chief executives said investors should brace for an equity market drawdown of more than 10% in the next 12 to 24 months, and that such a correction can be a positive development.

Corporate earnings are strong but “what’s challenging are valuations,” said Mike Gitlin, president and chief executive officer of investment manager Capital Group, on Tuesday during a financial summit organized by the Hong Kong Monetary Authority.