Stocks may fall 15% by year-end, warns Morgan Stanley. Here are some portfolio moves investors might consider.

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Morgan Stanley’s optimistic view of the economy isn’t keeping it from warning about a looming correction in the U.S. stock market.

“The issue is that the markets are priced for perfection and vulnerable, especially since there hasn’t been a correction greater than 10% since the March 2020 low,” said Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, in a note Tuesday. The bank’s global investment committee expects a stock-market pullback of 10% to 15% before the end of the year, she wrote.

Megatech stocks have been defying the transition that stocks typically make mid-cycle, with their price-to-earnings ratios remaining elevated despite declining in other areas of the market, such as cyclical and small-cap stocks, the Morgan Stanley report shows. Meanwhile, the yield on the 10-year Treasury note TMUBMUSD10Y, 1.367% rose almost 5 basis points Tuesday to 1.37%, the highest since July 13, according to Dow Jones Market data. Bond yields and prices move in opposite directions.

 

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Biden keeps throwing more and more money into the system and the stock market is just the catch all! Economy sucks but there is way more money out there than ever before! Stocks go up until our US dollar crashes! Disconnect between economy and stock market.

Up 15%

For those doubting it: stocks 'will' fall 15%. Happy now? No more 'may' 😂

These fortune tellers...

Nobody knows anything

The problem with this analysis is that there is soooo much cash out there now and it is going to continue to feed stocks, even with some Fed tapering.

Exactly, MAY fall. The same could be said about them rising. Stocks MAY rise by 15% also

nice

ModalVerbs

wow

which ANALyst from MS

Dang back to levels not seen since May..incredible research by ms

If they say is going down, you know is gonna go Up

good luck

And monkeys “might” fly out of my butt.

ms kinda sus 👀

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