Yahoo Finance·2025-11-04 11:12Core Viewpoint - The CEOs of Morgan Stanley and Goldman Sachs have expressed concerns that global equity markets may be approaching a correction due to high valuations driven by investor optimism, reminiscent of the dot-com boom [1]. Group 1: Market Concerns - Morgan Stanley CEO Ted Pick indicated that drawdowns of 10% to 15% should be anticipated, not necessarily linked to macroeconomic factors [2]. - Current market conditions have largely ignored risks such as inflation, high interest rates, policy uncertainty from trade dynamics, and a prolonged federal government shutdown [2]. Group 2: Sentiment and Market Cycles - Goldman Sachs CEO David Solomon noted that market cycles can last for extended periods, but changes in sentiment can lead to drawdowns, which are often unpredictable [3]. - The co-chief investment officers of Bridgewater Associates have also highlighted that investors may be underestimating risks to market stability and the limitations of the artificial intelligence boom in the U.S. [4].