‘Material risk’ looms over stocks as investors face bear market’s ‘second act’
KabuhayanAng materyal na panganib ay nagbabadya sa mga stock habang ang mga mamumuhunan ay nahaharap sa pangalawang aksyon ng bear market 10 17 2022 Balita ng Ethereum ng Bitcoin Stock-market investors have been adjusting to the jump in interest rates amid high inflation, but they have yet to cope with profit headwinds faced by the SP 500, according to Morgan Stanley Wealth Management. “While a rate peak may solidify estimates for the equity risk premium and valuation multiples, equity investors still face the bear market’s second act — the earnings outlook,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, in a note Monday. “They have been slow to recognize that pricing power and operating margins, which hit all-time highs in the past two years, are unsustainable,” she said. “Even without a recession, the mean reversion of profits in 2023 translates to a 10%-to-15% decline from current estimates.” Unprecedented monetary and fiscal stimulus during the throes of the pandemic had led to the largest U.S. companies booking record operating margins that were 150 to 200 basis points above norms seen in the past decade, according to Shalett. Tingnan ang: Ang wild gyrations ng stock market ay naglalagay ng mga kita sa focus habang sinisira ng