US stocks are in 'death zone' and could crash 26%, Morgan Stanley says

Investors have scooped up stocks as they expect the Federal Reserve will start cutting interest rates by the end of the year. Lower rates tend to lift stock prices because they support higher spending and cheaper borrowing, boosting the future cash flows that make up a core part of companies' valuations.

Wilson has repeatedly warned that the market rally won't last. He expects inflation to prove stickier than many expect, forcing the Fed to hold rates higher for longer to bring soaring prices under control. "The bear market rally that began in October from reasonable prices and low expectations has morphed into a speculative frenzy based on aWilson has said since late 2022 that the S&P 500 is likely to bottom out at 3,000 points this year – 26% below the 4,080 points it traded at as of Friday's closing bell.

Morgan Stanley is going to loose lot of money if stock doesn’t not crash within months. I am guessing they are paying news media to scare of investors so they rip benefits of short selling positions they have place couple of months ago.

Hello , the MS article you're quoting said '3, 000 feet' in relation to the analogy of investors rallying U.S. Equities like climbers of Mount Everest. Don't think it refers to the S&P 500 crashing to 3,000 points. Please check once again.

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Thanks Biden!!

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