Wall Street chief executives expect global stock markets to fall more than 10% over the next two years, but see it as a healthy correction in the market cycle.
Capital Group President Mike Gitlin said corporate earnings remain strong but stock valuations are currently too high, with most investors admitting prices are somewhere between “fair and unfair.”
That view was shared by Morgan Stanley’s Ted Pick and Goldman Sachs’ David Solomon, who insisted that modest corrections were normal. Pick added that in 2026 investors will focus more on company fundamentals than macro sentiment.
The S&P 500 and Nasdaq are now trading well above their historical averages, while tech stocks like Palantir are down on concerns about overvaluation. Citadel’s Ken Griffin said the market is well into a bull market.
David Solomon advised investors to stay invested and not try to time the market, noting that a 10–15% drop can happen even in a positive cycle and often helps stabilize the market.
