{"id":1780961,"date":"2022-12-20T06:08:05","date_gmt":"2022-12-20T11:08:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1780961"},"modified":"2022-12-20T07:18:28","modified_gmt":"2022-12-20T12:18:28","slug":"morgan-stanley-analyst-says-drop-in-u-s-corporate-profits-could-rival-2008-era","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morgan-stanley-analyst-says-drop-in-u-s-corporate-profits-could-rival-2008-era\/","title":{"rendered":"Morgan Stanley Analyst Says Drop in U.S. Corporate Profits Could Rival 2008 Era"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmorgan-stanley-analyst-says-drop-in-u-s-corporate-profits-could-rival-2008-era%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1780961&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/de4a9206255d27add96639009667fe1a\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p>(Bloomberg) &#8212; US equities are set for their worst year since the global financial crisis, and, according to Morgan Stanley strategist Michael Wilson, corporate profits are about to meet the same fate.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>A looming earnings recession \u201cby itself could be similar to what transpired in 2008\/2009,\u201d said Wilson. That could spark a new stock-market low that\u2019s \u201cmuch worse than what most investors are expecting,\u201d he wrote in a note.<\/p>\n<p>\u201cOur advice \u2014 don\u2019t assume the market is pricing this kind of outcome until it actually happens,\u201d Wilson said.<\/p>\n<p>The strategist \u2014 a stalwart equities bear who called this year\u2019s slump \u2014 said that although inflation has started easing from historic highs, recent signs of weakening in the US economy were worrying.<\/p>\n<p>Morgan Stanley\u2019s team is now leaning toward its bear case forecast for earnings of $180 per share in 2023 compared with analysts\u2019 expectations of $231. That \u2014 combined with the fact that the current equity risk premium is lower than in August 2008 even though valuations are higher \u2014 could see the S&#038;P 500 sinking to as low as 3,000 points next year, they said, implying declines of 22% from its Friday close.<\/p>\n<p>To be sure, Wilson doesn\u2019t foresee a systemic financial risk or signs of distress in the housing market and, therefore, doesn\u2019t expect 50% downside for stocks, as in 2008.<\/p>\n<p>A two-month rally in US stocks has fizzled out \u2014 keeping the S&#038;P 500 on track for its biggest annual slump since 2008 \u2014 following staunchly hawkish signals from the Federal Reserve and the European Central Bank. US stocks last week failed to overcome a technical downtrend in place since the start of the year, which has put an end to the past three bear-market rallies. Strategists at Goldman Sachs Group Inc. have also warned about the risk to profit margins next year as inflation remains high.<\/p>\n<p>Read More: Stock Market\u2019s Brutal Year Saps Wall Street\u2019s Faith in a Rebound<\/p>\n<p>Among sectors, Wilson said he\u2019s overweight health care, staples and utilities, and underweight discretionary and tech hardware stocks.<\/p>\n<p>&#8211;With assistance from Farah Elbahrawy and Michael Msika.<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>\u00a92022 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; US equities are set for their worst year since the global financial crisis, and, according to Morgan Stanley strategist Michael Wilson, corporate profits are about to meet the<\/p>\n","protected":false},"author":1,"featured_media":1780964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[10492,9139,5458,6079,5053,9114,5263,8881,3819,8671,9752,7238],"class_list":["post-1780961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-10492","tag-analyst","tag-bongino","tag-corporate","tag-drop","tag-era","tag-morgan","tag-profits","tag-report","tag-rival","tag-stanley","tag-u-s"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1780961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1780961"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1780961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1780964"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1780961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1780961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1780961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}