Morgan Stanley CEO: Crypto, meme stocks pose risk but general stock market 'not that crazy'

Morgan Stanley CEO James Gorman said Monday that certain speculative parts of the financial markets pose a risk to investors, like cryptocurrencies and meme stocks, but the overall stock market is "not that crazy," even at current historic levels of valuation. Speaking to CNBC, the head of Morgan Stanley (NYSE:MS) argued that the Federal Reserve will be forced to raise rates faster than many experts currently expect, a fact which will put pressure on stocks. However, he doesn't see significant damage as investors come to grips with a higher interest rate environment. "That kind of readjustment back to a more normal environment -- not necessarily a bad thing. A small correction here is not necessarily a bad thing," he said. The Morgan Stanley CEO contended that investors face bigger risks in more speculative investments, like high-valuation stocks tied to companies with no earnings, SPACs, meme stocks and cryptocurrencies. "Bitcoin, whether