Goldman Sachs, Morgan Stanley CEOs Predict 10-20% Market Correction Over Next 2 Years: 'Not Driven By...Macro Cliff' - Morgan Stanley (NYSE:MS), Goldman Sachs Group (NYSE:GS)

Market Correction Warning - Goldman Sachs and Morgan Stanley have warned investors to prepare for a potential market correction within the next two years, with a possible drawdown of 10-20% in equity markets [1][2] - Both CEOs emphasized that drawdowns of 10-15% are common even during positive market cycles, advising clients to stay invested and review portfolio allocations instead of trying to time the market [3][4] Growth Areas - Asia, particularly China, is highlighted as a key growth area, supported by the recent U.S.-China trade pact and ongoing investor interest in China's economy [5] Broader Economic Concerns - The warnings from Goldman Sachs and Morgan Stanley align with concerns from the Bank of England regarding geopolitical tensions, sovereign debt pressures, and high asset valuations, especially in technology sectors focused on artificial intelligence [5] - The International Monetary Fund has also raised alarms about the global exposure to U.S. equities, suggesting that a stock market correction could have severe global consequences [6] Market Performance - Year-to-date performance shows the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ) have increased by 16.88% and 23.88%, respectively [9]