Morgan Stanley’s Wilson Says Unclear Growth Cues to Crimp Stocks
- Warns third quarter is typically most challenging for stocks
- Growth uncertainty means risks of a selloff are higher: Wilson
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A double whammy of economic uncertainty and a weak period for corporate earnings forecasts is likely to cap stock market gains, according to Morgan Stanley’s Michael Wilson.
The strategist — among the most notable bearish voices on US equities until last year — said he expects the S&P 500 Index to trade in a range of 5,000 to 5,400 points as macroeconomic data flash no clear signals over the short term. The upper end of that range implies gains of just 1% from current levels, while the lower end would mean a decline of 6.4%.