(Bloomberg) -- Morgan Stanley’s Mike Wilson, a well-known stock market skeptic who correctly predicted this year’s slump, believes the bear market in US equities may conclude sooner than investors think.
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“We think ultimately the bear market will be over probably sometime in the first quarter,” Wilson said in an interview on Bloomberg Television. “All of this is subject to revision. I want to make clear, if the market starts trading off again and the S&P 500 blows through 3,650 on the downside, we will be bearish again.”
Wilson, who was ranked the best portfolio strategist in the latest Institutional Investor survey, reiterated earlier this week that the firm see stocks grinding higher as markets transition to expectations of falling inflation and lower interest rates. He sees the S&P 500 Index rebounding as much as 15% if it slides beneath its 200-week moving average of around 3,600, or about 7% below Tuesday’s closing level.
--With assistance from John McCorry.
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