Any rally in the stock market should be taken an as opportunity to sell as investors are facing a convergence of risk factors that will pose outsized risks to the market, Morgan Stanley analysts wrote in a note on Monday.
The Federal Reserve is unlikely to deviate from its path of raising interest rates this year, even as pressure on the economy mounts, analysts led by Mike Wilson wrote. The biggest risks will be seen over the next six to eight weeks, they said.
“We are firmly in the grasp of a bear market that is incomplete in both time and price.”
The bank pointed to the increase of risks to growth, spiking oil prices, and headwinds from the war in Ukraine paired with the Fed's commitment to tighter policy as reasons the bear market could deepen futher.
Source: Business Insider – Phil Rosen
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