“If complacency is one of the words most associated with the pre-Lehman years,” then “paranoia may be the one most tied to what remains of this cycle,” the strategists wrote.
But if Morgan Stanley is right, there could still be 10 percent downside from Friday’s close of 2,658.69.
“Our 2,400 bear case target should hold throughout this correction,” Wilson said. “We think this cyclical bear is taking the course of a consolidation that will keep the S&P 500 in a wide range of 2,400-3,000 for up to two years.”
This article was provided by Bloomberg News.