There is increasing concern that the United States may go to recession, but Mike Wilson of Morgan Stanley said that the economy has already been in a “rolling stagnation” over the past three years.
He said that President Donald Trump shocked investors through the “Tahrir Day” tariff, which represents the end of the bear market, when President Donald Trump shocked investors with the definitions of “Tahrir Day”, the end of the bear market, when President Donal shocked Bloomberg TV on Thursday.
He added: “Now we are in a new market, and capital market activity is just another sign that this analysis, or this conclusion, may be true.”
Wilson, the chief American stock strategy in Morgan Stanley and the chief investment employee, said any fluctuations and unification along the road is normal, noting that it is actually the best market that is declining straight in 2020.
In fact, the stock market has witnessed some straight lines in the form of V. V. at its lowest levels in April, the S&P 500 decreased significantly and to the point that it decreased by almost 20 % from the highest previous level. Since then, the index has increased by 30 %, achieving new records and leaving them nearly 9 % so far this year.
However, Wilson expected some moderation in the stock market in the third quarter, which may provide an opportunity to double the gathering.
He said: “I want to be very clear: it’s still early in the new market, so you want to buy these declines.”
Last month, Wilson said in note that the S&P 500 could reach 7200 by mid -2016, explaining that he began to exceed the most optimistic “bull” scenario.
He referred to strong profits as well as the adoption of artificial intelligence, the weak dollar, the tax discounts of Trump, the pent -up demand, and the expectations for the discounts of the Federal Reserve Prices in early 2026.
Wilson’s point of view is part of Increase the feeling of optimism Among the best Wall Street’s best analysts with relieving fears of customs tariffs with the signing of many commercial deals.
Last month, John Stolzvos, the chief investment strategy in Obenheimer, raised the target of the target price in the S&P 500 for this year to 7100 from 5,950, as he initially re -expected expectations in December 2024.
If the S&P 500 reaches 7,100 this year, it will be a profit of approximately 21 % for the year 2025, which represents a third year in a row with an increase of more than 20 %. This has not happened since the late 1990s, when the American economy and the stock market flourished.
Meanwhile, retail investors bought unnecessary shares whenever they decreased, which helped to charge the market even with the founding investors a less aggressive position.
The Dip purchase has pushed so that it has become difficult to do so as more investors try to advance the crowd, leading to faster counterattacks.
“The Half Life of Dips has ever became shorter than ever,” Steve Sousnik, the chief strategy in interactive intermediaries, Tell CNBC on Tuesday. “And I think that people are very afraid of losing dipping, they are mainly rushing in the slightest sign of one.”
He warned against purchasing declines in a reflection just because of the decrease in shares, saying that investors should be wisely and apply some analyzes to find real value.
However, the risks are that the buyers “hold a falling knife” in this process, leaving them with arrows that continue to decrease long -term.
“The market has a way to make the maximum number of people mistaken at an unspecified time,” Sosnik said.
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