The stock market's risk-reward is as bad as it's been during this bear market as the Fed keeps hiking into an earnings recession, Morgan Stanley says

• The stock market's current risk/reward profile is as bad as it has ever been in this bear market, according to Morgan Stanley's Mike Wilson.
• Wilson warned that the Fed is still hiking interest rates despite deteriorating fundamentals.
• "Price is about as disconnected from reality as it's been during this bear market," Wilson said.

Investors should be wary of chasing the recent stock market rally as the risk/reward profile is as bad as it has ever been during the current bear market.

That's according to Morgan Stanley's Mike Wilson, who warned in a Monday note that new lows in the stock market are likely as the Federal Reserve continues to hike interest rates amid deteriorating fundamentals and a corporate earnings recession.