Bloomberg (gated) convey the opinion in a Morgan Stanley research note forecasting a year-end target of 3900 for the S&P500.
Analysts at the bank cite:
-
Earnings per share for the S&P 500 are set to drop 16% this year
- anticipates that S&P 500 earnings per share will come in at $185, compared with a median $206 prediction
- “We think that the downside risk to US earnings is now”
- “While a deteriorating liquidity backdrop is likely to put downward pressure on equity valuations over the next three months, we also see EPS disappointment ahead as revenue growth slows and margins contract further.”