Summary
- Walter Bloomberg reported that Morgan Stanley believes recent risk has largely been priced in and that the S&P 500 correction is nearly over.
- Michael Wilson said a roughly 7%% rebound, 15%% earnings growth, and 20%% forward growth are supporting the market.
- Morgan Stanley said a buy-the-dip strategy remains effective during short-term pullbacks, while recommending greater exposure to cyclical stocks and high-quality growth stocks and flagging the possibility that the energy sector has already peaked.
Forecast Trend Report by Period
The recent correction in U.S. stocks may be entering its final stage.
Walter Bloomberg, a financial news account on X, reported on March 13 that Morgan Stanley sees the S&P 500 correction as nearly complete, with much of the recent risk already priced in.
Michael Wilson, a Morgan Stanley strategist, cited the index's roughly 7% rebound from its low and its ability to hold key support levels as signs the correction could be close to ending.
Wilson also said corporate earnings remain supportive. Profit growth of about 15% and forward growth of around 20% are helping underpin the market. He advised investors to buy short-term dips.
On strategy, Morgan Stanley recommended increasing exposure to cyclical stocks and high-quality growth shares. It also said the energy sector may already have topped out.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
