Byron Wien: Prepare for a pullback — the S&P is set to slide 6% or more

Widely followed investor Byron Wien says stocks have become overextended as they hit record highs, and he predicts a significant decline for the market in the months ahead.

"I think this is going to be a down year for the market. … I think it's going to struggle in the second half," the vice chairman at Blackstone Advisory Partners said Wednesday on CNBC's "Trading Nation."

Since the S&P 500 has risen 6.3 percent through Wednesday's close, that would represent a substantial loss for investors who are buying stocks now, as indexes hit all-time highs.

Wien's concerns come down to nothing more frightening than valuation levels that appear extended over historical averages.

"I don't think we're going to have a bear market," Wien said. "I just think the market is very fully priced, and we could have a pullback from current levels."

This is in line with a prediction made at the beginning of the year, when he foresaw that U.S. equities would suffer "a down year."

When he zooms out, Wien observes that companies have a lot of cash piled up on their balance sheets, and even with 2 percent economic growth, "I think companies will find a way to make money in that environment. So long-term, I'm positive about equities."

"But they're a little ahead of themselves now," he added.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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