Goldman Sachs and Morgan Stanley warn that the stock market may correct by 10% to 20%

AASTOCKS
2025.11.04 07:43

Goldman Sachs and Morgan Stanley warn investors that the stock market may experience a correction in the next one to two years, with a decline of 10% to 20%. Goldman Sachs CEO David Solomon believes that this reversal is a normal characteristic of a long-term bull market, emphasizing that clients should maintain their investments and review their portfolio allocations rather than trying to buy on the dip.

Morgan Stanley CEO Ted Pick also stated that investors should welcome periodic corrections, viewing them as a healthy trend rather than signs of a crisis.

Goldman Sachs expects global capital allocation to continue focusing on the Chinese market, as China remains one of the largest and most important economies in the world. Meanwhile, Morgan Stanley remains optimistic about the markets in Hong Kong, China, Japan, and India, with particular attention to China's AI, electric vehicle, and biotechnology industries