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The ‘single biggest risk’ to investors is being widely ignored — and Morgan Stanley warns it could spawn a recession within months

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  • Earnings growth for small-cap companies has been negative for two straight quarters, and is expected to deteriorate again when companies report third-quarter numbers.
  • According to equity strategists at Morgan Stanley, this trend is the single-biggest risk to the economic expansion that is not discussed in mainstream circles.
  • This earnings recession also forms the basis of their bearish view on stocks.
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The constant headlines surrounding the trade war with China have temporarily overshadowed another danger that’s brewing on home soil.

While geopolitics has been the clear driver of recent market action, the read more >>>

Source:: BusinessInsider.Com