Stocks are headed into risky territory as the Fed keeps policy tight and earnings growth slows, Morgan Stanley's chief stock strategist says

• Stocks are facing risks as the Fed continues to keep monetary policy tight, Morgan Stanley's Mike Wilson said.
• That's because markets are likely underpricing earnings downside, he said in a note.
• Wilson previously has warned of an earnings recession that could rival 2008.

Stocks are headed into risky territory as the Fed keeps its monetary policy tight, according to Morgan Stanley's chief stock strategist Mike Wilson.

Wilson, who has previously sounded the alarm for a 2008-like earnings recession to hit the market, warned there could be more downside risks as the Fed continues to keep monetary policy restrictive.