There are growing concerns about the possible recession in the United States, but Morgan Stanley’s Mike Wilson said the economy has been in a “rolling recession” over the past three years.
He told now that it is over, and President Donald Trump shocked investors with “Liberation Day” tariffs, marking the end of a bear market, which is over. Bloomberg TV Thursday.
“Now we are in a new bull market, and capital market activity is just another sign that this analysis or conclusion may be correct,” he added.
Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley, said any volatility and mergers along the way were normal, noting that it is actually preferable to the 2020 market.
In fact, the stock market has seen some straight lines recently in the form of a V-shaped recovery. During the April lows, the S&P 500 fell so quickly that it fell nearly 20% from its previous high. Since then, the index has invested 30%, hitting a new record, bringing it up nearly 9% so far this year.
But Wilson predicts that there will be some stock market control in the third quarter and there may be a chance to double the rallies.
“I want to be very clear: this is still starting a new bull market, so you want to buy these dips,” he said.
Wilson said in a note last month that the S&P 500 could hit 7,200 by mid-2026, explaining that he is starting to get closer to his more optimistic “bull case” scenario.
He cited lucrative revenues as well as AI adoption, a weak dollar, Trump’s tax cuts, suppressed demand and expectations for the Fed’s tax cuts in early 2026.
Wilson’s point of view is Enhance optimism Among other top Wall Street analysts, fears about tariff concerns as several trade deals were signed.
Last month, Oppenheimer chief investment strategist John Stoltzfus raised his S&P 500 target to 7,100 this year, restoring his December 2024 outlook.
If the S&P 500 index reaches 7,100 times this year, the 2025 earnings are about 21%, the third consecutive year of growth, with an increase of more than 20%. This has never happened since the late 1990s when the U.S. economy and stock markets flourished.
Meanwhile, retail investors relentlessly buy stocks every time they fall, which can help the turbocharger market even if institutional investors take a less positive stance.
The benefits of buying dips are so high that it’s actually getting harder to do, as more investors try to lead the crowd, exacerbating faster rebounds.
Steve Sosnick, chief strategist for interactive brokers Tell CNBC Tuesday. “And I think because people are afraid to miss the dip, they basically rushed in with the slightest sign.”
He warned that simply because the stocks lowered the stock, he said investors should be smarter and adopt some analysis to find the real value.
Nevertheless, the risk is still “grab the knife” in the process, allowing them to own stocks that have long-term declines.
“The market can make the largest number of people do wrong in the most inappropriate time,” Sosnick said.
