Morgan Stanley: Why A Fed Rate Cut Will Not Halt The Coming Recession

Morgan Stanley’s Mike Wilson, already the most bearish of Wall Street’s sellside research analysts, turned his bearishness up a notch today, when he slashed his EPS forecast for next year as a result of Morgan Stanley’s economists changing their forecasts for global growth to a stagnation through year end rather than a continued recovery as a result of “sustained escalation and incremental tariffs further slowing growth projections to the point of recession”, and now sees not only a further decline in earnings in 2019 but also unchanged earnings in 2020, downward revised from a prior forecast of a +5% increase in EPS, as corporate profit hit their plateau for this cycle, and obviously once the recession hits, it’s only downhill from there.