Morgan Stanley's Adam Parker warns that stocks could take a beating if earnings fall short of...

|By:, SA News Editor

Morgan Stanley's Adam Parker warns that stocks could take a beating if earnings fall short of current expectations of ~$112/share. "If prior recessions prove relevant to next year’s economy, $54-$68 in EPS in 2012 would be a more likely range.” Attaching a reasonable 15 P/E multiple to the low end of that range would result in 810 on the S&P 500 - a 28% plunge.