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 Bloomberg TV.
"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 amid growing concern that interest rates near record lows are creating asset-price bubbles.
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.
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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.