"Our gut tells us that a 50% or deeper decline from the February top might be the ultimate path," the activist firm's latest client letter says.
In their model, there could be rolling shutdowns for the next two years, pushing the market down another 60%. Morgan Stanley disagrees.
Bond heavyweight Jeff Gundlach has blasted the Federal Reserve as a "failed" and "broken" institution, claiming the central bank is now off charter.
Charlie Munger agrees with the boss: now is not the time to burn cash. Wait until the storm passes and then grab strength at a deep discount.