by Chris Black
No one knows what the market is going to do unless they know what the government is going to do, in which case it is easy to predict.
These statements from bankers are largely meaningless, and one has to wonder if they are not trying to manipulate the market by making them.
However, they are worth taking note of regardless.
RT:
US stocks have soared to unsustainable highs and could crash 26% within months, Morgan Stanley’s top strategist has warned.
In an analyst note the bank’s chief US equity strategist, Mike Wilson, said that the current level of stock valuations could be compared to the “death zone,” a term in mountaineering describing an altitude so high that climbers do not have enough oxygen to breathe.
“Many fatalities in high-altitude mountaineering have been caused by the death zone, either directly through loss of vital functions, or indirectly by wrong decisions made under stress or physical weakening that lead to accidents,” Wilson wrote.
“This is a perfect analogy for where equity investors find themselves today, and quite frankly, where they’ve been many times over the past decade,” he added.
The metaphor indicates the excessive levels that stock prices have climbed to since the start of this year. Wilson suggested the S&P 500 could tumble to 3,000 points within months, down about 26% from current levels, saying that “it’s time to head back to base camp before the next guide down in earnings.”