tl;dr
Mike Wilson, Morgan Stanley’s chief US equity strategist, states the US economy has entered a new bull market, ending a rolling recession that lasted three years and concluded in April. While he anticipates some volatility and corrections in the third quarter, he views these as buying opportunities ...
Mike Wilson, Morgan Stanley’s chief US equity strategist, declares that the US economy has entered “a new bull market.” In a recent Bloomberg TV interview, Wilson explained that Morgan Stanley views the past three years as a rolling recession that ended in April, marking the start of this fresh upward trend.
Wilson acknowledges that the third quarter might bring some volatility and drawdowns but emphasizes that these corrections should not be seen as a threat to the bull market’s validity. He encourages investors to view such dips as buying opportunities, noting that the bull market is still in its early stages.
For the bull market to sustain momentum, Wilson highlights two critical factors: a positive rate of change in economic growth, particularly visible through earnings improvements, and supportive fiscal and monetary policies. He points out that while the Federal Reserve may not cut rates immediately, signals suggest that a rate cut is forthcoming, providing additional policy support.
With good flow dynamics, solid earnings growth, and an accommodative policy environment, Wilson outlines the perfect storm of ingredients needed for the bull market to continue thriving.