Latest News

The Wall Street Journal: Morgan Stanley’s Gorman ‘pretty relaxed’ about possible recession, thinks one wouldn’t be long or severe


James Gorman isn’t worried about how a possible recession and bear market will affect his bank.

The Morgan Stanley

 chief executive said Monday that he is “pretty relaxed” about the impact of a possible U.S. recession, a scenario he called a 50-50 proposition based on historical experience.  

“We’re in a brave new world right now. I don’t think anyone can accurately predict inflation one year from now,” he said at an investor conference. The government said Friday that the consumer-price index hit its highest level since 1981, and U.S. stocks tumbled again Monday, along with cryptocurrencies and other risky assets, to put the S&P 500 in a bear market, as defined by a 20% decline from its Jan. 3 recent high.

But Gorman cited a backdrop of strong balance sheets for corporations and consumers as reason to be optimistic that a recession wouldn’t be severe or last a long time. And while the stock-market selloff has hampered Morgan Stanley’s investment-banking business in the short term, the weak market also is reason not to worry, he said.  

“We’ve had plenty of cycles where things look shaky and the market tells a different story,” he said. “I wouldn’t say I’m totally relaxed, but I’m pretty relaxed.” 

An expanded version of this report appears on

Also popular on

Fed likely to consider 0.75-percentage-point rate rise this week.

The states with the most and least expensive gas prices: See the map

Wharton professor Jeremy Siegel is one of the best stock watchers alive. He says the S&P 500 is already pricing in a recession and bear market

Previous article

How Long Does the Average Bear Market Last?

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News