A brief bounce back in the stock market may be short-lived amid chronic inflation and the likelihood of a recession on the horizon, according to analysts at Morgan Stanley and Goldman Sachs Group, Inc.
“A counter-trend rally may continue, but make no mistake, we don’t believe this bear market is over, even if [the U.S. economy] avoids a recession,” Michael Wilson, Morgan Stanley’s chief investment officer, wrote in a new analyst note on Monday.
In the note, it was estimated that the odds of a recession over the next 12 months are now up to 36 percent, and pointed to increasing unemployment claims and declining job openings….