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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Goldman and Morgan Stanley think we haven’t hit bottom (and they’ve called this correctly so far).

https://uk.finance.yahoo.com/news/morgan-stanley-goldman-strategists-see-072309250.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZHJ1ZGdlcmVwb3J0LmNvbS8&guce_referrer_sig=AQAAAGuB5nt3c_lLLP0SfSMAJSv2JucPZjDM0iGFXo7AygrUjzkHvSBskWT0sasp8KcxTdFhn4yvylkgzy23HT0kvYgDqyi-s1luqEGulq4g8QBVWQE96opJWXAOfmdUUeK9NoJtMcTGRN9zCHcM5QowADhKuXUaL0vYbwmoMQvyugvB

The key read-across from the 1970s is when investors start to believe that inflation will stay high for longer, equity markets begin to focus on real instead of nominal earnings-per-share rate, which for this year is likely to be negative, SocGen said.

“We have still not seen the true bottom for equities yet,” Kabra said.

His counterpart Michael J. Wilson at Morgan Stanley, one of Wall Street’s most vocal bears and who correctly predicted the latest market selloff, agrees that the S&P 500 needs to drop another 15% to 20% to about 3,000 points for the market to fully reflect the scale of economic contraction.

“The bear market will not be over until recession arrives or the risk of one is extinguished,” the Morgan Stanley team said.

The calls from Wall Street’s top strategists underline how investor sentiment on risk assets has soured in recent weeks as runaway inflation and a hawkish Federal Reserve raised the specter of a prolonged economic contraction. Wilson said that should a full-blown recession become the market’s base case, the S&P 500 could bottom near to 2,900 index points -- more than 21% below its last close.[/quote]

Really? They've called this correctly so far? Because in April, Goldman predicted the market would fall 21% to bottom out at 3600.  [/quote]

Morgan Stanley’s economist called it correctly. [/quote]

Called what? The fact there would be a sell off? So did other economists. But just a month ago he predicted a bottom of 3400:

https://www.bloomberg.com/news/articles/2022-05-23/morgan-stanley-s-wilson-says-too-soon-to-turn-bullish-on-stocks[/quote]

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