Brace for US stocks to crash again – their extreme valuations echo the 2022 bear market, Morgan Stanley strategists warn

• US stocks look as overvalued as when the 2022 bear market kicked off, Morgan Stanley warned.
• Investors should brace for another crash, the bank's wealth management strategists said.
• "The real damage for the cycle… may still be ahead," they said in a note Monday.

Get ready for US stocks to crash again, because they're looking overvalued — just like they did at the start of the bear market last year, Morgan Stanley strategists have warned.

"The stock market and the credit market are fighting the Federal Reserve's likely path of rising interest rates. US stock valuation is at an extreme," the team in the bank's wealth management division said Monday.