J.P. Morgan Chase Co-president Daniel Pinto believes equity markets could see as much as a 40 percent correction within the next few years.

"The equity market has some way to go for the next year to two," Pinto said in an interview with Bloomberg TV. "But then, if there is a correction, it could be a deep correction. It could be between 20 and 40 percent depending on the valuations at the time. The most important thing for someone like us is just to be prepared."

Pinto's comments come a month after fears of burgeoning inflation and rallying interest rates caused a spike in market volatility and sent the Dow Jones industrial average tumbling into correction territory. Many Wall Street economists expect prices to steadily increase throughout 2018 given tight labor market conditions.