A Bull and a Bear Agree on a Rally, But How Long Will It Run?
JPMorgan’s Marko Kolanovic and Morgan Stanley’s Michael Wilson both see room for the S&P 500 to rise further. How durable is the bounce?
A rare alignment.
Photographer: Alex Kraus/Bloomberg
Welcome to one of the best-predicted bear-market rallies in recent history. For all the gloom about recession risk and rising borrowing costs, many prognosticators accurately predicted that stocks were poised for a rebound, which has materialized in the form of a 6.4% bounce in the S&P 500 Index since the June 16 low.
Now, several strategists think the index has room to run, including two who have recently been at opposite ends of bull-bear spectrum. Morgan Stanley strategist Michael Wilson, a prominent bear, said in a note that the S&P 500 may climb an additional 7% or so, echoing similar sentiment Friday from JPMorgan Chase & Co.’s Marko Kolanovic, a well-known bull and the No. 1 equity-linked strategist in the last Institutional Investor survey.