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Morgan Stanley’s Wilson Says Potential Ukraine War a ‘Polar Vortex’ Risk to Stocks

  • Potential Russian invasion could tip economies into recession
  • It’s too early to call end to equity correction, Wilson writes

A potential Russian invasion of Ukraine could push economies into recession, posing another significant risk for equity markets, according to one of Wall Street’s most vocal bears.

A war “materially increases the odds of a polar vortex for the economy and earnings,” Morgan Stanley’s chief U.S. equity strategist Michael Wilson wrote in a note to clients. A spike in energy prices “would destroy demand, in our view, and perhaps tip several economies into an outright recession,” the strategist and his team said, adding that energy stocks are most at risk of a selloff.