Morgan Stanley’s Wilson Says Bear Market May End in Early 2023
(Bloomberg) — Morgan Stanley’s Mike Wilson, a well-known stock market skeptic who correctly predicted this year’s slump, believes the bear market in US equities may conclude sooner than investors think.
Most Read from Bloomberg
Adidas Cuts Ties With Ye, Absorbing EUR250 Million Profit Hit
New Covid Boosters Aren’t Better Than Old Ones, Study Finds
Musk Tells Bankers He Plans to Close Twitter Deal on Friday
Renters Hit Breaking Point in a Sudden Reversal for Landlords
Too Much Gas. Europe’s Energy Crisis Takes a Surprise Turn
“We think ultimately the bear market will be over probably sometime in the first quarter,” Wilson said in an interview on Bloomberg Television. “All of this is subject to revision. I want to make clear, if the market starts trading off again and the S&P 500 blows through 3,650 on the downside, we will be bearish again.”
Wilson, who was ranked the best portfolio strategist in the latest Institutional Investor survey, reiterated earlier this week that the firm see stocks grinding higher as markets transition to expectations of falling inflation and lower interest rates. He sees the S&P 500 Index rebounding as much as 15% if it slides beneath its 200-week moving average of around 3,600, or about 7% below Tuesday’s closing level.
–With assistance from John McCorry.
Most Read from Bloomberg Businessweek
What the Alzheimer’s Drug Breakthrough Means for Other Diseases
The Fantasy of Instant Delivery Is Imploding
10 Takeaways From Matt Levine’s ‘The Crypto Story’
From Bedrooms to Kitchens, Europe Ponders How Cold Is Too Cold
The Private Jet That Took 100 Russians Away From Putin’s War
(C)2022 Bloomberg L.P.