Morgan Stanley’s chief U.S. equity strategist Mike Wilson said U.S. stocks could face several near-term pullback risks, including the U.S. midterm elections, market concerns tied to artificial intelligence spending, and liquidity constraints. He said those factors could push the S&P 500 down about 9% from its recent record high to 7,100. Even so, Wilson said such a decline would create a buying opportunity rather than change his broader view on equities. He expects the index could later climb to 8,000 once those risks are absorbed. Wilson also pointed to historical performance, saying that since 1950, U.S. stocks have risen in every six-month and 12-month period following midterm elections. Based on that pattern, he said investors should buy U.S. equities on weakness no matter how the election turns out, according to Bloomberg.
Odaily reported that Morgan Stanley chief U.S. equity strategist Mike Wilson said U.S. stocks may face several short-term correction risks, including the U.S. midterm elections, market worries over artificial intelligence spending, and liquidity constraints.
Wilson said those factors could pull the S&P 500 about 9% below its recent record high to 7,100. Still, he said such a move would create a buy-the-dip opportunity.
Morgan Stanley’s view on the next move
Wilson expects the S&P 500 could later rise to 8,000 after those risks are priced in.
He also cited historical data showing that since 1950, U.S. stocks have posted gains in every six-month and 12-month period after midterm elections. On that basis, he said investors should buy U.S. equities on weakness regardless of the election outcome, according to Bloomberg.
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