Morgan Stanley strategists say stocks ignore Fed, earnings reality

Bloomberg/Farah Elbahrawy/2-13-2023

“[Morgan Stanley’s Michael] Wilson — a staunch Wall Street bear who correctly predicted last year’s selloff when US equities posted their worst performance since 2000 – expects deteriorating fundamentals, along with Fed hikes that are coming at the same time as an earnings recession, to drive equities to an ultimate low this spring. ‘Price is about as disconnected from reality as it’s been during this bear market,’ the strategists said.”

USAGOLD note: In other words, the stock mania continues unabated…… As the old Wall Street saying goes, they do not ring a bell at the top. Once the scramble to get out begins, things could deteriortate rapidly. Previously, Wilson predicted the S&P 500 will hit bottom between 3000 and 3300 – an almost 30% drop from where we are now.