HomeBusinessUS Markets Tumble as Real Estate Weakens

US Markets Tumble as Real Estate Weakens

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On Tuesday, all four major US benchmark stock indexes fell as real estate data showed home sales dropped by 0.7% last month and Russian President Vladimir Putin suspended the nuclear arms control treaty with the United States. Additionally, the chief U.S. equity strategist at Morgan Stanley said the stock market is in a “death zone” and could drop another 26%.

Investor Fears of a Prolonged Recession Swell, US Tensions with Russia Further Disrupt Global Markets

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Image: TradingView

Morgan Stanley Strategist Warns of ‘Death Zone’ for US Stock Market

Furthermore, Morgan Stanley strategists do not believe the US central bank and chair Jerome Powell will pivot this year. The chief U.S. equity strategist at Morgan Stanley, Michael Wilson, has warned that the stock market is now in the “death zone.” Wilson detailed that the “death zone” name is a common term in mountaineering, where people who climb to extremely high altitudes lose oxygen. Wilson believes equity markets are in a similar death zone, and he predicts the S&P 500 (GSPC) could slide 3,000 points in a quick period of time.

“Many fatalities in high-altitude mountaineering have been caused by the death zone, either directly through the loss of vital functions, or indirectly by wrong decisions made under stress or physical weakening that lead to accidents,” Wilson explained in his note to investors. “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.”

Source: Bitcoin.com



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