Reported about 1 year ago
Morgan Stanley's Chief Investment Officer Mike Wilson stated that a 10% decline in the S&P 500 stock index before the U.S. presidential election in November is 'highly likely.' Wilson attributed the potential decline to uncertainty surrounding Federal Reserve interest rate adjustments, diminishing company pricing power leading to possible disappointing earnings, and the disproportionate impact of a few companies driving market gains despite lackluster overall earnings results and rising price to earnings multiples. Wilson has maintained a bearish outlook for the year and adjusted his S&P 500 12-month target to 5,400 points in late May, while the index closed at 5,572 on Monday, exceeding his forecast.
Source: YAHOO