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Warning: Influential Wall Street analyst Elaine Garzarelli, of Lehman Brothers, said Monday the stock market could fall by as much as 19 percent from its peak under the “worst” case. Likening current stock market conditions to those of the 1976 to 1978 period, she said rallies aren’t likely to exceed 4 to 7 percent. She repeated her view, however, that stocks aren’t entering a bear market. Instead, she called it “a declining trend associated with a slowdown in economic and earnings growth.” Garzarelli cut her 1994 earnings estimate for the Standard & Poor’s 500 Stock Index to $30.50, from $32.50. She cited recent gains in interest rates.
