Wall Street isn't even close to pricing in recession. More damage could be on the way

If a proper bear market is unfolding on Wall Street, then it still has a long way to go, especially if the U.S. economy tips into recession. While the S&P 500 on Monday narrowly avoided what would have been the worst three-day selloff since the Great Depression, that doesn't mean we have reached a turning point. Stock valuations and earnings forecasts have fallen, but they still appear far too high when considering both previous market downturns and the immense economic turmoil being unleashed by U.S. President Donald Trump's protectionist trade agenda. A U.S. recession this year isn't yet the consensus…