Stocks could slump another 20%, Morgan Stanley says

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INVESTOR ALERT: Wall Street forecasters are increasingly bearish as they eye a potential recession, which could send stocks tumbling. alabamanewsnetwork

Such a steep decline in stocks would likely result in trillions of additional losses on top of last year's hit to household wealth, impacting millions of workers who are saving for retirement as well as investment funds for pensions, universities and other institutions. by Institutional Investor last year, said he expects S&P 500 companies to be less profitable in 2023 than many other forecasters believe.

That may cause more than a twinge of concern for investors given that 2008 marked the start of the Great Recession. The S&P 500 plunged about 37% that year, although the index regained its footing in 2009, when returns jumped by double-digits, and continued to rise for the rest of the decade. Wilson noted that his forecast pegs the average per-share earnings of S&P 500 companies at $195 in 2023, far below Wall Street's forecasts of about $215 to as high as $231 per share.

"The S&P 500 still screens as statistically expensive vs. history on 17 out of 20 of the measures we track," Bank of America analysts noted in a January 9 report.

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Of course... and the GOP wants us to survive on our ever-up and down 40ks!! This Gen Xer has worked my arse off since 16, you take my SS away, lots of homeless seniors are incoming. Guess they want us all to live by the coast and float away.

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