Morgan Stanley CIO Warns Liquidity Crunch, Not Rate Hikes, Main Risk to U.S. Stocks Today

According to Morgan Stanley Chief Investment Officer Mike Wilson, liquidity constraints rather than interest rate hikes are the primary risk facing U.S. equities today, June 23. Wilson cited three key indicators of tightening liquidity: the ratio of the S&P 500 to gold has risen 40% since February, reserve management programs have shrunk approximately 75% from peak levels, and Treasury repo operations have been cut by 50%.
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