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Goldman, Morgan Stanley Say Any Drop in Stocks Likely to Be Small

  • Strategists see limited scope for sharp market slump in 2022
  • Stock picking seen ‘difficult’ but ‘necessary:’ Morgan Stanley
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Goldman's Kostin Sees 5,100 S&P 500 by Year-End 2022

Wall Street’s chief bull and bear now agree on one thing: any stock market correction next year will likely be a moderate pullback, rather than a dramatic plunge. 

Morgan Stanley strategists led by Michael Wilson said Monday that they are now more confident that the S&P 500 index will drop about 6.6% by the end of 2022 to 4,400 points. While this is among the most pessimistic Wall Street estimates for next year tracked by Bloomberg, it’s far from predicting a bear market.