The stock market is in for another bottom by year-end as investors are too focused on the Fed and too optimistic about earnings, Morgan Stanley’s investment chief says
“‘We think the earnings risk is now upon us. We’re cutting numbers. And we think that the numbers are going to come further down over the next two quarters,’ [Morgan Stanley’s chief investment officer Mike Stanley] said, adding that earnings cuts and lowering optimism typically leads to a new bottom in the market. He expects that to hit between September and December, despite some prevailing optimism that stocks will rally from here on out.”
USAGOLD note: Wilson sees a further drop of 15% to 25% from current levels.