Doing The Fed's Work: Michael Wilson Says Tighter Financial Conditions Have Already Crushed The Average Stock... Just Not The Index

Three weeks ago, Morgan Stanley's Mike Wilson, one of Wall Street's louder bulls for much of the past year, warned that higher yields and energy prices could spark a 10% market drop. Last weekend he followed up by warning that the market's bad breadth "must be resolved one way or another", with everything hinging on bond vol.

Now, with the 10Y still north of 5.3%, the dollar at new cycle highs and crude refusing to cooperate, Wilson is back with the obvious follow-up: if the Fed is tightening, and the market is tightening on the Fed's behalf, how much tightening are financial conditions already delivering?

Financial Conditions: Tight, And Getting Tighter