Morgan Stanley’s Wilson Sours on Earnings Amid Growth Woes
- Strategist sees 2023 earnings falling even without recession
- Expects S&P 500 to drop at least 13% more in fourth quarter
Michael J. Wilson
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
One of Wall Street’s biggest bears is turning even more pessimistic on the outlook for US earnings against the backdrop of a slowdown in economic growth.
Morgan Stanley strategist Michael J. Wilson cut his expectations for earnings-per-share growth for the year, saying that a slowing economy is now likely to be a bigger concern for stocks, rather than scorching inflation and a hawkish Federal Reserve. In 2023, he expects earnings to fall 3% even in the absence of a recession.