The air is getting thin for stock-market investors, warns Morgan Stanley strategist Mike Wilson.
What’s the best metaphor to describe the stock market, that has sent the S&P 500 up 16% from its October lows, and up 6% this year?
Morgan Stanley strategist Mike Wilson has turned to the Jon Krakauer best-seller “Into Thin Air,” which chronicles the death of 12 mountaineers trying to scale Mount Everest. The book delves into the death zone, which starts 3,000 feet from the mountain’s summit, an altitude where oxygen pressure isn’t sufficient to sustain life for an extended period.
By December, however, “the air started to thin” with P-to-Es down to 18, and the equity risk premium down to 225 basis points. “In the last few weeks of the year, we lost many climbers who pushed further ahead in the death zone,” he said. The “no landing” scenario is one most closely associated with Torsten Slok, the chief economist at Apollo Global Management. It should be noted that Slok says a no-landing scenario — where the economy does not slow down — is not good for markets, because it will require more aggressive Fed rate-hike activity.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Terrell Davis '100% Bought In On Sean Payton,' Insists Russell Wilson Isn't WashedTerrell Davis tells TMZ Sports he's '100% bought in on Sean Payton' ... while also insisting quarterback Russell Wilson is not washed.
Read more »
Fortnite Adds Sam Wilson's Captain AmericaSam Wilson's Captain Americahas been added to Fortnite. Fortnite has expanded far beyond just [...]
Read more »
How Morgan State's new leader prepares for the Battle of the BandsMorgan State University in Maryland competes Saturday in its first Honda Battle of the Bands performance in Montgomery, Alabama. It's the largest showcase for HBCU marching bands in the country.
Read more »
How Stanley Wilson Jr. Went From NFL Player to Dead in a Psych Ward“Behind that smile was a lot of pain,” one former teammate told The Daily Beast after Stanley Wilson Jr.’s sudden death earlier this month.
Read more »
Morgan Stanley says these stocks are making improvements on ESG that can also boost returnsMorgan Stanley highlighted a 'rate of change' metric that gauges how much of an improvement a company is making on environmental, social and governance issues.
Read more »