July 30 Equity markets will see a decline at
some point after rising for the past several years, former
Federal Reserve chairman Alan Greenspan said in an interview on
"The stock market has recovered so sharply for so long, you
have to assume somewhere along the line we will get a
significant correction," Greenspan said on Wednesday.
Greenspan's comments come amidst growing concern that
interest rates near record lows are creating asset-price
Federal Reserve Chair Janet Yellen earlier this month had
also expressed concern about stretched valuations in certain
corners of the equity markets including the small cap,
biotechnology and social media sectors.
The Standard & Poor's 500 Index has gained 17 percent in the
past year and has almost tripled since March 2009, its low point
during the financial crisis. The benchmark index was down about
0.1 percent on Wednesday.
(Reporting by Avik Das in Bangalore; Editing by Sriraj