Morgan Stanley’s Wilson Sees Stock Swings on Debt Ceiling Debate
- Investors expect short-term volatility from negotiations: MS
- Strategist remains bearish on corporate profits, macro outlook
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Morgan Stanley’s Michael Wilson — among the most bearish voices on Wall Street — expects the debate around raising the US government’s $31.4 trillion borrowing limit to trigger some sharp swings in equity markets.
Most clients “believe it will ultimately get resolved, but not without some near-term volatility,” Wilson wrote in a note, adding that many have framed the event as “a lose-lose for markets.”