Bloomberg TV
- The market is in worse shape now as sticky inflation is eating into company profits, says Morgan Stanley's Mike Wilson.
- He warned the market is underestimating businesses' inability to balance out costs and revenue.
- "We think the market is in worse shape," Wilson said in a CNBC interview on Tuesday.
US financial markets are underestimating the extent to which company profits may fall as inflation remains sticky, according to Morgan Stanley chief equity strategist Mike Wilson.
In an interview with CNBC on Tuesday, the high-ranking stock strategist warned that markets aren't paying enough attention to a so-called negative operating leverage cycle, where companies' costs appear to be rising faster than sales.