- The Fed’s rush to provide liquidity does not equate to quantitative easing, Mike Wilson wrote.
- “The bottom line is that we think this is exactly how bear markets end,” Morgan Stanley’s CIO said.
- But the last phase of a bear market can be “vicious,” Wilson added in a note.
The Federal Reserve’s rush to provide banks with liquidity amid a contagion crisis should not be a green light for investors to take risky bets, Morgan Stanley chief investment officer Mike Wilson said in a Monday note.
Instead — combined with a growing credit crunch and earning estimates that remain overly optimistic — markets may be in for a dramatic decline.
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