US stocks are in 'death zone' and could sink 26% Morgan Stanley warns

According to Morgan Stanley strategists, U.S. stocks have reached unsustainable highs and

will soon see losses if investors realize there won't be a Federal Reserve pivot later this year.

The stock market has reportedly reached a level known as the "death zone," which is a term used in mountaineering to describe an altitude

so high that climbers do not have enough oxygen to breathe. Michael Wilson, the chief U.S. equity strategist at Morgan

Stanley and a longtime bear on Wall Street, issued this week's warning in an analyst note.

The death zone has contributed to a significant number of high-altitude mountaineering fatalities,

either directly through the loss of vital functions or indirectly through mistakes made under duress or physical deterioration

that result in accidents, according to Wilson. This is a fantastic illustration of where equities investors are at the moment—and,

to be honest, where they have been numerous times over the previous decade.

He predicted that within months, the S&P 500 would drop by around 26% to 3,000 points.

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