Bearish Morgan Stanley tips 16% drop in S&P 500 earnings in 2023
As a journalist, I can report that Morgan Stanley has predicted a 16% drop in S&P 500 earnings in 2023. According to a note from the bank’s strategists led by Mike Wilson, they anticipate an “ings recession” this year that they believe is not yet priced in, followed by a sharp rebound in earnings in 2024/2025. This prediction is based on the expectation of a slowdown in economic growth and rising inflation, which could lead to a decline in corporate profits.
It is important to note that this is just a prediction and not a certainty. However, it is worth considering the potential impact of such a decline in earnings on the stock market and investors. As a journalist, it is my responsibility to report on such predictions and provide context for readers to make informed decisions.