22.05.2023 05:58 PM
Morgan Stanley's Michael Wilson warns that the recent rally is false.
Wilson predicts the approaching crash of 2022, which earned him first place in last year's Institutional Investor survey and remains one of the most bearish voices in the market, even though the S&P has grown by 9% in 2023. At the moment, he sees too many worrying triggers to believe that profits will be sustained.
Wilson is confident that this is not a breakthrough confirming a new bull market. In particular, he sees risks in overvalued valuations, a narrow range of profit-generating stocks, and the outperformance of defensive stocks.
One of the risks of increased volatility for the market is the ongoing debates in Washington over raising the US debt ceiling. Wilson said that the decision at the negotiations may temporarily push stocks up, but "we will consider it a false breakthrough/bull trap."
Other JPMorgan Chase & Co. strategists also warn of greater market volatility as negotiations drag on. President Joe Biden and Republican House Speaker Kevin McCarthy are scheduled to meet today.
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.
