(Photo by Scott Heins/Getty Images)
- Investors aren't in a bull market yet, and stocks will still be ravaged by an earnings recession, Morgan Stanley said.
- Though investors are expecting the Fed to dial back rate hikes soon, rates could still remain high amid a tight labor market.
- Markets also haven't priced in an earnings recession yet, which could be a major headwind in 2023.
Investors shouldn't believe that they're witnessing the start of a new bull market, and an earnings recession is still set to be a major obstacle to any gains this year, Morgan Stanley said in a note on Monday.