Morgan Stanley Investment Chief Predicts 14% Drop in Stocks Despite Unease and Disagreement.

Morgan Stanley's chief investment officer and chief U.S. equity strategist, Mike Wilson, who correctly predicted the 2022 bear market, is predicting a 14% drop in the S&P 500 in the coming year due to an "earnings recession" that hasn't been priced in and Wall Street's profit expectations being too robust. Wilson argues that falling inflation will lower corporate profits, just as rising inflation helped to increase them in 2021, and that higher interest rates are leading the economy into a "boom/bust regime" like what was seen after World War II.