'Wild ride': Morgan Stanley's Mike Wilson predicts double-digit percentage drop will hit stocks in early 2023

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Brace for double-digit percentage drop to hit stocks, Morgan Stanley's Mike Wilson warns (via CNBCFastMoney)

"It's the path. I mean nobody cares about what's going to happen in 12 months. They need to deal with the next three to six months," he told CNBC's "" on Tuesday. "That's where we actually think there's significant downside. So, while 3,900 sounds like a really boring six months. No... it's going to be a wild ride."

Wilson, who serves as the firm's chief U.S. equity strategist and chief investment officer, believes the S&P could drop as much as 24% from Tuesday's close in early 2023. "You should expect an S&P between 3,000 and 3,300 some time in probably the first four months of the year," he said. "That's when we think the deacceleration on the revisions on the earnings side will kind of reach its crescendo."closed at 3,957.63, a 17% decline so far this year. Wilson's year-end price target was 3,900 for this year, too.

"The bear market is not over," he added. "We've got significantly lower lows if our earnings forecast is correct.""Most of the damage will happen in these bigger companies — not just

 

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