Morgan Stanley Gives Huge Stock Market Crash Warning in 30 Days
Morgan Stanley told investors a stock market correction could arrive within 30 days. However, based on developments over the weekend, markets may not wait that long, with Monday likely to be the first test.
Mike Wilson, the bank's chief US equity strategist, is not worried about artificial intelligence (AI). He is worried about oil.
What Wilson is Actually Warning About
Wilson told Bloomberg that energy costs could starve the market of cash. US benchmark crude prices continue to hold above $100, up nearly 80% this year.
"I do think in the next 30 days, if oil goes to $120, $130, $140, that's a drain on liquidity," he said.
Wilson described market liquidity as sufficient for now, but not abundant.
He is not telling clients to sell. Instead, Morgan Stanley is rotating toward companies that generate cash internally, not cutting equity exposure.
Is Coinbase the Place for Investors to Hide?
Morgan Stanley began covering Coinbase (COIN) on September 10, its first call on the exchange since the 2021 listing. While the rating was equal weight, the price target is $250, representing a climb of almost 43% from the current price of $175.26.
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