Mike Wilson, head of Morgan Stanley’s US equity strategy division, confirmed the bearish view on Wall Street, which foresees a tactical correction of the US stock market.
The strategist believes the prospect of an earnings recession has not yet been priced into the US stock market:
“We still expect a tactical correction, coinciding with the conclusion of the cyclical phase of the bear market,” underlined the strategist of Morgan Stanley.
The outlook is for the S&P 500 to stand at 3,900 at the end of the year, down about 9% from 4,282.37 points at the index close last Friday.
The forecast for the S&P 500 is also well below the estimates, on average, of Wall Street strategists, who expect the benchmark stock to average value at 4,157 by the end of the year, according to the results of a survey launched from CNBC.