Morgan Stanley’s Wilson Says US Profit Drop Could Rival 2008 Era
- Stock declines may be much worse than investors expect: MS
- Strategist recommends health care, staples, utilities stocks
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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.