Revelations 18:23 ‘For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’
- Morgan Stanley Warns of Something Worse Than a ‘Normal Recession’
- Morgan Stanley’s Chief U.S. Equity Strategist Michael Wilson said that he’s convinced a corporate earnings recession is coming—and that it could be worse than a “normal” recession.
- Businesses reluctant to cut staff in the face of deteriorating economic conditions and as demand falls would put more pressure on profit margins, he warned. This could lead to a situation where unemployment doesn’t move up meaningfully but corporate earnings plunge.
- Separately, in an analytical note cited by Bloomberg, Wilson and his team of strategists said the soaring dollar was creating an “untenable situation” for stocks and this, combined with central banks tightening policy “at a historically hawkish pace,” means that odds are growing for “something to break.”
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