Morgan Stanley’s Mike Wilson, a well-known stock market sceptic who correctly predicted this year’s slump, believes the bear market in US equities may conclude sooner than investors think.
“All of this is subject to revision. I want to make clear, if the market starts trading off again and the SThe S&P 500 was trading at 3878 at midday in New York overnight.Wilson, who was ranked the best portfolio strategist in the latest Institutional Investor survey, said a 19 per cent slump in the SP 500 Index this year has left it testing support at its 200-week moving average of around 3600, which could lead to a technical recovery.
Not all strategists are hopeful that US equities will bottom soon. Goldman Sachs Group strategists said in a note to clients on Tuesday that conditions for a trough aren’t visible yet as stocks don’t fully reflect the latest rise in real yields and odds of a recession.