This article first appeared on GuruFocus.

A trio of Wall Street heavyweights is sending a clear message: brace for a market pullback, but don't panic. Speaking at a financial summit hosted by the Hong Kong Monetary Authority, Capital Group CEO Mike Gitlin said equities aren't cheap and credit spreads are tightboth signs that valuations are pressing against their upper limits. Most people would say we're somewhere between fair and full, Gitlin noted. While earnings are holding up, the next 12 to 24 months could bring a 1015% drawdown in equities, he saidsomething that's not just possible, but potentially constructive.

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Morgan Stanley (NYSE:MS) CEO Ted Pick echoed that sentiment. While noting that markets have traveled far, he flagged lingering policy risk in the US and persistent geopolitical uncertainty as catalysts for volatility. Yet unlike past panics, this time the systemic risks seem narrower, and investors are taking selective risks again through new issues globally. Pick pointed toward 2026 as a likely turning point in earnings dispersion, with strong firms pulling ahead. Importantly, he called 1015% corrections a healthy development, not a signal of crisis. In his view, short-term volatility could set the stage for long-term outperformanceprovided investors don't overreact.

Goldman Sachs (NYSE:GS) CEO David Solomon added another layer of context. Yes, tech multiples may be elevated, he said, but that doesn't apply across the entire market. Goldman's advice? Stay invested. Don't try to time the next dip. According to Solomon, even sharp market pullbacks often unfold within generally positive cycles. It just means things run and then they pull back so people can reassess, he said. For long-term allocators, the takeaway is simple: expect bumps, but don't let them knock you off course.