Slumping growth could soon kill the stock-market rally, Morgan Stanley's top strategist says
Slumping economic growth could be about to stop the stock-market rally in its tracks, Morgan Stanley's top strategist has warned.
Mike Wilson said Monday that he's sticking with his view that the economy will stagnate in the second half of the year, which he expects will chip away at listed companies' earnings and drag down stock prices. "Given our fundamental view on growth, we find it hard to get on board with the current excitement and narrative supporting it," Wilson, who is Morgan Stanley's chief US equity strategist, wrote in a note to clients.
"Investors may be in for a rude awakening given the very big reach for risk we are seeing," he added."Time will tell but suffice it to say, we haven't changed our view on the growth front." Wilson has been one of Wall Street's most bearish voices in 2023, repeatedly predicting a stock-market slump – but his pessimistic outlook hasn't been realized yet.
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