March Will Bring Bear-Market Risks for US Stocks, Morgan Stanley Says
- Earnings threaten stocks, downgrades to resume: Morgan Stanley
- Rally is a ‘bull trap’ and valuations remain broadly elevated
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The headwinds for US equities are set to increase even further in March, with stocks coming under pressure from faltering earnings and high valuations, according to Morgan Stanley strategists.
“Given our view that the earnings recession is far from over, we think March is a high risk month for the next leg lower in stocks,” strategists led by Michael Wilson, ranked No. 1 in last year’s Institutional Investor survey after correctly predicting the selloff in stocks, wrote in a note Monday.