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Morgan Stanley CIO said, the US market will be seen recovering from the recession in early 2023

Mike Wilson says that due to the 19 percent fall in the S&P 500 index this year, the index has been seen taking support on its 200-week moving average located around 3600. A technical recovery could be seen in this stock from this level.

Morgan Stanley Chief Investment Officer: Mike Wilson said during a recent interview to Bloomberg television that the downturn in US markets may seem to end earlier than investors expected. Significantly, Mike Wilson is a well-known analyst on the equity market. He had correctly predicted this year’s recession.

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In a conversation with Bloomberg television, he said that ultimately this downturn in the market could seem to end any time in the first quarter. This is the subject of a review. He further added that “I want to make it clear that if the market slides from the top this time and the S&P 500 index goes below 3650, we will be in a bearish phase again”.

Mike Wilson says that due to the 19 percent fall in the S&P 500 index this year, the index has been seen taking support on its 200-week moving average located around 3600. From this level, a technical recovery could be seen in the stock.

According to a Bloomberg report, the S&P 500 has gained about 6 percent since October 12. Significantly, on October 12, the S&P 500 closed at its lowest level since November 2020. Richinventures does not independently verify this report.

Earlier this week, citing falling inflation and low interest rates, Mike Wilson emphasized that the US market could see a rally. In a note issued to his clients last week, he had said that the S&P 500 index is likely to touch the level of 4150 and a bear market rally can be seen in the US market.

However, he has also said that the second half of 2023 could be more difficult for the US equity market.

Morgan Stanley believes that the S&P 500 index may show a closing of 3900 by next June. These figures are based on the most recent survey conducted by Bloomberg in mid-October.

It should also be noted here that not all market strategists are so optimistic about the US market exiting the bearish phase.

According to Goldman Sachs Group Inc , there are no signs of bottom out in the US markets right now.

Earlier this week Marko Kolanovic of JPMorgan Chase said he expects 2023 to be more challenging for US markets.

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