Citadel CEO Ken Griffin expects stocks to push further into record territory since he thinks the business cycle is not over.
"If we look at history we're not yet at the end of this business cycle. What's somewhat disturbing thought is we're getting closer to that moment in time. And we're getting closer to that moment in time with yet an enormous amount of accommodative monetary policy," Griffin said Wednesday on CNBC's "Power Lunch."
"I think this business cycle has further to go and I think the stock market's going to go with that," Griffin said. "But what's worrisome is the firepower that we have to address the next downturn is somewhat constrained. That should worry all of us."
U.S. stocks haven't fallen more than 20 percent from a recent high since March 2009, marking the second-longest bull market in history.
Griffin's hedge fund manages more than $26 billion for partners. Citadel's flagship funds underperformed the broader market last year, up 5.06 percent in their smallest gain in eight years, according to Institutional Investor's Alpha. The S&P 500 rose 9.5 percent in 2016.