The S&P 500 could fall another 22% and investors' view of more downside for stocks is too mild, Morgan Stanley says

Jan 9 2023 by Business Insider

 
Traders work on the floor of the NYSE

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 The S&P 500 could sink by more than investors anticipate, Morgan Stanley warned on Monday.  The benchmark is likely to drop about 22% from current levels to around 3,000.  Investors see the S&P 500 sitting at 3,500-3,600. That's too high for a mild recession, the bank said.

Investors should brace for an much bigger decline in the US stock market than they are expecting for 2023, Morgan Stanley told clients Monday.

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