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"We Took Out The June 2007 Highs": Morgan Stanley's Sell Signal Just Hit An All Time High

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"We Took Out The June 2007 Highs": Morgan Stanley's Sell Signal Just Hit An All Time High

BY TYLER DURDEN

SATURDAY, JUN 05, 2021 - 09:00 PM

For the past several months, Morgan Stanley's fundamental analysts have been turning increasingly bearish on stocks, with the pessimistic sentiment plateauing earlier this week when chief equity strategist Michael Wilson said that there is far too much optimism in the market, and that while earnings are slowly rising, forward PE multiples are far too high and are set to slide, with "the de-rating about 75% to go or an approximate 15% decline in P/Es from here." As a result, in Wilson's view - which is rapidly emerging as the most bearish on Wall Street - "earnings revisions will not be able to offset that de-rating, leaving the overall market vulnerable to a 10-15 % correction over the next 6 months."

[See link for full article]

https://www.zerohedge.com/markets/we-took-out-june-2007-highs-morgan-stanleys-sell-signal-just-hit-all-time-high

https://www.zerohedge.com/markets/we-took-out-june-2007-highs-morgan-stanleys-sell-signal-just-hit-all-time-high

Context :

A.

"A Reset Is Required": Why Morgan Stanley Sees Pain In The Next 6 Months

https://www.zerohedge.com/markets/reset-required-why-morgan-stanley-sees-pain-next-6-months

B.

China's Credit Impulse Just Turned Negative, Unleashing Global Deflationary Shockwave

https://www.zerohedge.com/markets/chinas-credit-impulse-just-turned-negative-unleashing-deflationary-shockwave

Post 60160 View on 8kun

>>60157

I'll take B for $1000 as the catalyst

The banks can keep fantasy-land, earnings-wise, going for longer than China can deal with credit stagnation