A famous bear on Wall Street has just changed his mind and is beginning to be optimistic about the future of US stocks.
Morgan Stanley strategist Michael Wilson currently predicts that the S&P 500 index will rise 2% by June 2025, which is quite different from his previous view that it would fall 15% by December.
The strategist was bearish on the outlook for 2023, but it was not realized as the market continued to rise. This time, he finally made concessions and raised the target position of the S&P 500 index from 4,500 points to 5,400 points. The forecast for the index jumped from one of the lowest on Wall Street to where it is expected to reach a record high.
While discussing Morgan Stanley's views on various assets in the second half of the year in the report on Sunday, Wilson and others wrote, “In the US market, we expect strong earnings per share growth.”
In recent months, despite the S&P 500 reaching new highs, Wilson repeatedly stuck to its target of 4,500 points, and said in March he saw no reason for an increase due to the lack of widespread profit growth. He said last month that he decided to avoid making market predictions and instead focus on finding investment opportunities hidden under the surface.