Wall Street CEO warns that the stock market may experience a pullback due to valuation reasons.

Several CEOs on Wall Street have stated that investors should be prepared for a stock market decline of more than 10% in the next 12 to 24 months, and have pointed out that this pullback may be a healthy trend. Mike Gitlin, President and CEO of investment management company Capital Group, noted that corporate earnings performance is strong, but "valuation levels pose a challenge." When asked whether current stock market valuations are cheap, reasonable, or full, Gitlin said that most people "would say that our current valuations are somewhere between reasonable and full, but I don't think many people would say they are between cheap and reasonable." He also pointed out that the situation with credit market spreads is similar. Morgan Stanley CEO Ted Pick and Goldman Sachs Group CEO Sohum Sood also expressed similar views, suggesting that there may be significant selling in the near future and noting that pullbacks are a normal feature of market cycles.