Mike Wilson Sees Up to 10% S&P 500 Drop, Is Eager to Buy the Dip

Morgan Stanley’s Mike Wilson, not long ago one of Wall Street’s most steadfast bears, says he sees a bull market building in stocks. But first the S&P 500 Index may have to take a hit.

The bank’s chief US equity strategist sees US equity prices dropping 5% to 10% this quarter as the impact of President Donald Trump’s trade policies gets reflected on corporate balance sheets. He thinks the decline will be short lived, giving investors an attractive entry point to a rally that will ultimately be driven by improving expectations for corporate earnings growth.