- U.S. stocks have reached unsustainable highs and face imminent losses as soon as investors realize there will be no Federal Reserve pivot later this year, Morgan Stanley strategists report.
- Michael Wilson, the chief U.S. equity strategist at Morgan Stanley and a longtime Wall Street bear, recently warned in an analyst note that the stock market has reached a level termed the “death zone” – the name used in mountaineering to describe an altitude so high that there is not enough oxygen for climbers to breathe.
- “Many fatalities in high-altitude mountaineering have been caused by the death zone, either directly through loss of vital functions, or indirectly by wrong decisions made under stress or physical weakening that lead to accidents,” Wilson wrote. “This is a perfect analogy for where equity investors find themselves today, and quite frankly, where they’ve been many times over the past decade.”
