Southeast Asia's largest bank CEO warns investors: 'Buckle up, we're in for a volatile ride'

Core Viewpoint - The CEO of DBS Group warns investors to prepare for market turbulence due to stretched valuations in the U.S. stock market, particularly concerning artificial intelligence stocks and the concentration of investments in a few major companies [1][2][5]. Group 1: Market Volatility - DBS CEO Tan Su Shan highlights ongoing volatility in various markets, including equities, rates, and foreign exchange, and anticipates this trend to continue [1]. - The concentration of investments in the "Magnificent Seven" stocks (Amazon, Alphabet, Meta, Apple, Microsoft, Nvidia, and Tesla) raises concerns about a potential market correction [2][3]. Group 2: Market Correction - Tan Su Shan suggests that a market correction of 10%-20% could occur within the next 12 to 24 months, indicating a significant drawdown is likely [3]. - Morgan Stanley CEO Ted Pick supports the idea that periodic pullbacks are healthy for the market, a sentiment echoed by Tan Su Shan [4]. Group 3: Broader Warnings - The warnings from Tan Su Shan align with similar cautions from the International Monetary Fund and central bank leaders regarding inflated stock prices [5].