Morgan Stanley warns stock rally is not the start of a bull market

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Morgan Stanley strategist Michael Wilson warned in a Monday note that strong stock gains this year are not indicative of the beginning of a bear market.

TrendMacro Chief Investment Officer Don Luskin provides insight on the debt ceiling debate and the Fed's policies on 'Making Money.'over the past month is likely to fizzle out soon, according to Morgan Stanley.

Michael Wilson, the chief U.S. equity strategist at Morgan Stanley and a longtime Wall Street bear, said in an analyst note on Monday that recent"Is this finally the breakout to confirm a new bull market?" Wilson wrote. "The short answer is no."That is due to a number of "technical signals" that contradict the start of a bear market, including the, lofty valuations, broad cyclical underperformance by regional banks, retailers and transport, Wilson wrote.

In addition, he believes that last week's market movement – in which the S&P surpassed 4,200 points for the first time in more than six months – was indicative of "panic buying." "Rather than a short squeeze, the market was driven by the biggest winners as more market participants convinced themselves the next bull market may have begun and they can't afford to miss it.

Stocks rallied in the first quarter of 2023, and equities seem poised to continue that momentum despite

 

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