Morgan Stanley: Beware of Earnings Season; Firm Sees 10% Downside From Current Levels

I’ve been saying this my entire life. Always fear the facts, and relish the fantasy of promise. Understand?

For years, earnings season has offered nothing but misery for investors, as results disappointed on a large scale. An economy growing at 0.6% isn’t one to fall in love with. In between earnings reports, we get to play house and pretend that things are getting better.

But when the actual data comes streaming in, like a raging river of blood, we quickly find religion and repent for our sins of greed and gluttony.

Fade the rallies. Board the ark.