{"id":2527,"date":"2022-09-26T11:17:00","date_gmt":"2022-09-26T15:17:00","guid":{"rendered":"https:\/\/liferep.net\/?p=2527"},"modified":"2022-09-26T11:17:00","modified_gmt":"2022-09-26T15:17:00","slug":"monday-september-26-2022","status":"publish","type":"post","link":"https:\/\/liferep.net\/?p=2527","title":{"rendered":"Monday September 26, 2022"},"content":{"rendered":"\n

Fox News: The stock market’s value is down $7.6 trillion since Biden took office<\/p>\n\n\n\n

The Morgan Stanley strategist who called the bear market says the S&P could fall to the low 3,000s<\/h1>\n\n\n\n

PUBLISHED MON, SEP 26 2022<\/p>\n\n\n\n

The S&P 500<\/a> could fall to the low 3,000 range, as an earnings recession appears \u201cunavoidable,\u201d but the market may then not stay down for long, said Mike Wilson, Morgan Stanley\u2019s chief U.S. equity strategist, who was correctly bearish going into this tough year for markets.<\/p>\n\n\n\n

\u201cWe\u2019re in a cyclical downturn for growth, and that\u2019s the fire-and-ice narrative to a tee, right \u2014 the tightening policy and the slowing growth,\u201d he said Monday on CNBC\u2019s \u201cSquawk Box<\/a>.\u201d \u201cAnd we\u2019re just not finished yet, in our estimation.\u201d<\/p>\n\n\n\n

Market observers have questioned where the \u201cbottom\u201d of the market will be now that the Federal Reserve appears to be willing to tolerate a recession in order to win its battle against inflation.<\/p>\n\n\n\n

Wilson\u2019s bear case for the S&P 500 is around 3,000, with his base case at 3,400. The strategist said he sees potential for both cases with the soft landing for earnings now less likely. These estimates represent a drop of about 8% to 18% from the S&P 500\u2032s current level.<\/p>\n\n\n\n

The rapid move in rates was another bad sign in the strategist\u2019s view, with the one-year Treasury bill<\/a> yield surpassing 4% on Monday.<\/p>\n\n\n\n

Wilson said this could be an unusual moment in the market. The employment picture can create confusion about the state of the economy, as the labor shortage keeps wages up, which isn\u2019t typically seen during recessionary periods.<\/p>\n\n\n\n

Wilson also noted there is \u201cso much money sloshing around\u201d compared with other times of economic downswing, but he would not use that to make bets on where the market goes.<\/p>\n\n\n\n

He said efforts to curb inflation are the \u201cmedicine\u201d to get the country out of the \u201cdebt trap\u201d it has been trying to free itself from since the 2008 recession. The market needs time to readjust to the headwinds as the Fed attempts to control inflation through rate hikes, he said.<\/p>\n\n\n\n

Wilson said we are nearing a turning point and he is getting ready to spring into action once the market hits the firm\u2019s target. The S&P 500 is off 23% from its high and near its lowest levels in two years.<\/p>\n\n\n\n

\u201cWe\u2019re getting close to the end,\u201d he said. \u201cThe damage has been done. … Now, we\u2019re actually starting to get ready to be more aggressive. It\u2019s just not time yet, in our view, and to be premature can be quite costly.\u201d<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Fox News: The stock market’s value is down $7.6 trillion since Biden took office The Morgan Stanley strategist who called the bear market says the S&P could fall to the low 3,000s PUBLISHED MON, SEP 26 2022 The S&P 500 could fall to the low 3,000 range, as an earnings recession appears \u201cunavoidable,\u201d but the market may […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2527","post","type-post","status-publish","format-standard","hentry","category-daily-news"],"_links":{"self":[{"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/posts\/2527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/liferep.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2527"}],"version-history":[{"count":1,"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/posts\/2527\/revisions"}],"predecessor-version":[{"id":2528,"href":"https:\/\/liferep.net\/index.php?rest_route=\/wp\/v2\/posts\/2527\/revisions\/2528"}],"wp:attachment":[{"href":"https:\/\/liferep.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/liferep.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/liferep.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}