Stocks could be due for a correction of up to 20% ‘by fire or ice’: Morgan Stanley strategist

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Morgan Stanley’s Chief Investment Officer Mike Wilson says investors should always be positioned for a market correction of 10%, but warned that investors may not be ready for a harsher correction that could be coming soon.

“You should always be expecting a 10% correction. If you’re investing in equities, you should be prepared for that at any time,” Wilson told Yahoo Finance on Friday. “A 20% correction, which is really more disruptive, where people might want to try and position for, the catalyst for that is going to be once again an ice scenario.”

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Wilson’s “ice scenario” envisions a sharp reversal of the post-lockdown “overconsumption binge,” which could slow the stronger earnings and operating leverage seen in S&P 500 companies as of late.

finance.yahoo.com/news/stocks-could-be-due-for-a-correction-of-up-to-20-by-fire-or-ice-morgan-stanley-strategist-185927231.html

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