“It’s too early to be bullish,” one Morgan Stanley analyst said early Monday, warning the S&P could still fall another 10%.
As a weeklong sell-off that’s pushed major indexes down into bear-market territory intensifies, investment banks are warning clients the worst may be yet to come, with some experts warning the S&P 500 could plunge as much as 11% more if corporate earnings continue to disappoint as the Federal Reserve begins raising interest rates. “Winter is here, and the damage under the surface has been enormous and even catastrophic for many individual stocks,” Wilson said. “The Fed is serious about fighting inflation, and it’s unlikely that it will be turning dovish anytime soon given the seriousness of these economic threats and the political support to take action.” Not everyone’s bearish on the market’s short term.
