Some of the most influential figures in global finance are beginning to express concern. Warnings of a potential 10% drop in stock markets are no longer whispers — they’re public statements from the CEOs of major Wall Street banks. Why are these voices sounding off now, and what indicators are flashing red? From tech stock overvaluation to shifting global dynamics, investors may be facing a tougher landscape than recent rallies would suggest.

Wall Street sees risk in overheated markets

At the recent financial summit in Hong Kong, there were unusually candid words from the heads of leading banks and investment companies about overheated markets. Ted Pick, CEO of Morgan Stanley $MS, said that investors should welcome the possibility of a 10-15% market decline, as long as it is not caused by some major macroeconomic shock. In other words, a minor correction without a catastrophic trigger would be a healthy market cleansing, he said. Similarly, David Solomon, head of Goldman Sachs $GS,…