Remarks on Monday from a Morgan Stanley note to clients:
- “With the S&P 500 rally now crossing the 20% threshold, more are declaring the bear market officially over
- We respectfully disagree due to our 2023 earnings forecast.
- Ironically, a Fed pause may awaken the bear tactically just as liquidity headwinds ramp up.”
Morgan Stanley have low expectations for 2023 earnings and see this flowing into equity pricing.
