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

“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.

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 👀

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morgan Stanley downgrades U.S. stocks: 'We see a bumpy September-October''We see a bumpy September-October as the final stages of a mid-cycle transition play out,' said Andrew Sheets, chief cross-asset strategist at Morgan Stanley. Pro Strong buy novavax NVAX Novavax Reddit wallstreetbets wsbmod RobinhoodApp JoeBiden BarackObama POTUS justinbieber HillaryClinton jimcramer Pro The market is up for seven consecutive months. Something has to give. Pro AngelOne dear customer beware from angel broking they are charging dp charges for customer account and pool account separately kindly check ur transaction SEBI
Source: CNBC - 🏆 12. / 72 Read more »

Market bull Tom Lee predicts a record September, but warns that a 10% correction could come in OctoberMarket bull Tom Lee predicts a record September, but warns stocks are vulnerable to a 10% pullback in October (via TradingNation) TradingNation Lol….. algorithmic setups an all…. Manipulated markets move in prescription fashion😘💅🏼 The entire “retail” market is ready to slap the sheet out of the American stock markets…. Dips, corrections, runs, crashes; Apes Will be the downfall of the manipulation by market makers TradingNation CryptoWhale TradingNation So basically flat going into the strongest trading month of the year. Awesome 👏
Source: CNBC - 🏆 12. / 72 Read more »