Top bulls and bears are sounding off

Good morning. When the top voices on Wall Street can't agree on what happens next, at least you know the coming chapter is going to be interesting for markets. 

The bulls and bears are out to play — let's see who's saying what. 

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1. Wall Street is still divided on what comes next for stocks. But heavy-hitters Goldman Sachs and Morgan Stanley are both forecasting more downside ahead. 

For the third time this year, Goldman analysts lowered their year-end S&P 500 price target, this time to 4,300. The price cut is driven by sluggish growth and high interest rates, which have pushed beyond what the bank expected just a couple months ago. 

Morgan Stanley, too, is anticipating a slowdown. Analysts led by Mike Wilson said negative earnings revisions are likely as economic growth eases, and that the stock market is set to fall as a result.

"The S&P 500 is still not priced for this backdrop," Wilson said, explaining that his bear-case scenario is a 15% drop from current levels. The bank is cautioning investors not to be fooled by any rally, because more downside is coming. 

But JPMorgan's quant guru Marko Kolanovic is on the opposite side of the fence, and he's sticking to the bullish forecast that he's pushed all year. Specifically, he expects stocks to rebound because they've priced in too much recession risk. 

"Equities stand to recover if a recession doesn't come through, given already substantial multiple de-rating, reduced positioning and downbeat sentiment," Kolanovic wrote Monday. 

In other news:

2. A veteran fund manager shared how he's beaten 96% of peers this year. Salem Abraham broke down his secrets to success as a mutual fund pro — and made the case for four of his top investing ideas despite seeing downside risk for stocks.

3. Rising oil prices are just a sliver of what's to come, according to a 32-year veteran in energy markets. Climate policies won't curb supply or demand, Anas Alhajji said. He shared the top three things investors need to understand in the face of an upcoming unprecedented energy crisis — and how to play the market. 

4. Famed tech bull Dan Ives said investors should buy these stocks to make a diversified portfolio of future winners. These companies are set to emerge from the "massive overcorrection" that is slamming the sector, the Wedbush analyst said. See the 22 stocks he's eyeing right now.

5. Diesel markets are "telling us there's a shortage." Supply of low-sulfur diesel is dwindling and struggling to keep up with booming demand. In the Central Atlantic region, inventories have crashed to 78% from 2020 to their lowest in a decade. 

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This newsletter was curated by Phil Rosen. Thoughts or questions? Sound off in the comments section below.