Morgan Stanley signals potential rally in U.S. stocks
Morgan Stanley Chief Strategist Michael Wilson stated that the correction in U.S. equity markets, which began in June, is approaching its final stage.
Wilson forecast that the S&P 500 could decline to the 7,100–7,300 range before recovering toward the end of the year. The index fell 2.7% last week to 7,376.86 points, marking a 5.7% decline from its record high on October 6.
Wilson advised investors to focus on high-quality cyclical stocks with strong earnings potential that have experienced significant price declines, rather than waiting for the market to reach an exact bottom. The strategist highlighted the possibility of a year-end rally, noting that reduced political uncertainty following the U.S. midterm elections and strong corporate earnings could support equity markets. Morgan Stanley maintains its year-end S&P 500 target of 8,000 points.
Comments