Morgan Stanley Warns of Something Worse Than a ‘Normal Recession’

Traders work on the floor of the New York Stock Exchange in New York City, on Sept. 23, 2022. (Spencer Platt/Getty Images)

By Tom Ozimek

Morgan Stanley’s Chief U.S. Equity Strategist Michael Wilson said that he’s convinced a corporate earnings recession is coming—and that it could be worse than a “normal” recession.

Wilson said in a Sept. 26 interview with CNBC’s “Squawk Box” that his team at Morgan Stanley is looking closely at the U.S. business earnings story and the impact of corporate profits on equities, which have been on a wild ride in recent months.

“We think it’s unavoidable … to avoid an earnings recession and that’s what matters for stocks,” Wilson said, with his remarks coming on the same day that the so-called Wall Street fear gauge soared to its highest level since mid-June when U.S. equities last hit a bear market bottom.

The CBOE Volatility Index, known as the VIX, tracks the 30-day implied volatility of the benchmark S&P 500 and is seen a measure of stock market investor fear……more here

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