Morgan Stanley Tells Stock Bulls Not to Kid Themselves on Trade
- Friday to mark near-term high for the stock market: Wilson
- Caution stands in contrast with JPMorgan’s optimistic view
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Using the U.S.-China trade truce as a reason to dive into equities failed miserably 10 months ago and is unlikely to work now, according to Morgan Stanley strategists led by Mike Wilson.
It’s already looking shaky, considering the S&P 500 erased half its 1.9% rally on Friday in the day’s last 30 minutes. In that session, shares surged after President Donald Trump said the two sides agreed to the outlines of a deal that could be signed as early as next month. Gains shrunk as traders realized many of the thorniest issues remain unresolved.