Morgan Stanley’s Wilson Says US Profit Drop Could Rival 2008 Era
https://finance.yahoo.com/news/morgan-stanley-wilson-says-us-090718552.html(Bloomberg) -- US equities are set for their worst year since the global financial crisis, and, according to Morgan Stanley strategist Michael Wilson, corporate profits are about to meet the same fate.
A looming earnings recession “by itself could be similar to what transpired in 2008/2009,” said Wilson. That could spark a new stock-market low that’s “much worse than what most investors are expecting,” he wrote in a note.
“Our advice — don’t assume the market is pricing this kind of outcome until it actually happens,” Wilson said.
The strategist — a stalwart equities bear who called this year’s slump — said that although inflation has started easing from historic highs, recent signs of weakening in the US economy were worrying.
Shades of 2008/2009 in 2023?
