Morgan Stanley – Likelihood Of A Major Equity Sell-Off During The Next 12 Months Is Around 20%

The likelihood of a major equity sell-off during the next 12 months is around 20% according to a recent Cross-Asset Dispatches research report from strategists at Morgan Stanley. The report, a copy of which has been reviewed by ValueWalk, has been compiled by Morgan analysts Serena W Tang and team, who claim that due to the current level of credit spreads and yield spreads, the probability of a major equity market drawdown in the next 12 months is around one in five.

Likelihood Of A Major Equity Sell-Off During The Next 12 Months Is Around 20%

Tang and team’s conclusion is based on more than just credit spreads. Within the report, the team looks at 40 different market and macro indicators, and...