World shares sink as China Evergrande fears spark risk off

Typical Mid-Cycle Correction Would Yield 10% Correction in S&P500, But a 'More Destructive Outcome' is Starting to Look More Likely - Morgan Stanley

Michael Wilson, the Chief U.S. Equity Strategist and Chief Investment Officer at Morgan Stanley, believes Wall Street is leaning towards a broader market correction that could yield a bigger-than-anticipated pullback.

Typically, the mid-cycle transition would end with a rolling correction that ultimately hits S&P 500, writes Wilson in a note sent to clients. He sees two short-term risk paths that would yield a correction: 1) fire (overheating economy) and 2) ice (earnings revisions and data points deceleration).

Morgan Stanleys year-end price target on S&P 500 is about 10% lower... More