Bloomberg reported that Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, sees several near-term risks for the U.S. stock market. He pointed to the U.S. midterm elections, investor concerns tied to artificial intelligence spending, and liquidity constraints as factors that could trigger a short-term correction. Wilson said those pressures could pull the S&P 500 down about 9% from its recent record high to 7,100.
Even so, Wilson did not frame the move as a lasting bearish turn. He said such a decline would create a buying opportunity and expects the S&P 500 could later climb to 8,000 once those risks are absorbed. He also cited historical performance, saying that since 1950, U.S. stocks have risen in the six months and 12 months following every midterm election. Based on that pattern, Wilson said investors should buy U.S. equities on dips regardless of the election outcome.
Bloomberg reported that Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, said the U.S. stock market could face several short-term correction risks, including the U.S. midterm elections, market concerns over artificial intelligence spending, and liquidity constraints.
Wilson said those factors could push the S&P 500 down about 9% from its recent record high to 7,100.
He said the pullback would create a buy-the-dip opportunity and added that the S&P 500 could later rise to 8,000 after those risks are cleared.
Wilson also said that since 1950, U.S. stocks have posted gains in the six months and 12 months after every midterm election, and he recommended buying U.S. equities on dips regardless of the election result.
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