Morgan Stanley, Goldman Strategists See More Stock Market Losses

(Bloomberg) — Equities have yet to fully price in the risk of a recession and may have further to fall, according to Morgan Stanley and Goldman Sachs Group Inc. strategists.

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Although this year’s slump in US stocks has left them more fairly priced, the S&P 500 Index needs to drop another 15-20% to about 3,000 points for the market to fully reflect the scale of economic contraction, Morgan Stanley strategists led by Michael Wilson wrote in a note.

“The bear market…

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