In an analyst’s note, the chief U.S. equity strategist of Morgan Stanley investment bank, Mike Wilson, said that the current stock market run-up is like the “death zone” that mountain climbers experience when they reach an altitude so high they don’t have enough oxygen to breathe, RT reported yesterday. “Many fatalities in high-altitude mountaineering have been caused by the death zone, either directly through loss of vital functions, or indirectly by wrong decisions made under stress or physical weakening that lead to accidents,” Wilson wrote.
“This is a perfect analogy for where equity investors find themselves today, and quite frankly, where they’ve been many times over the past decade,” he added.
“The bear market rally that began in October from reasonable prices and low expectations, has morphed into a speculative frenzy based on a Fed pause/pivot that isn’t coming,” Wilson wrote.
