Suche
Mein Konto
Why US equity strategist Michael Wilson is not betting on a year-end rally - pessimistic forecasts for the fourth quarter.
As www.finanzen.net reports, Wall Street bear Michael Wilson is not very optimistic about the stock markets at the end of the year. As lead US equity strategist at Morgan Stanley, he warns investors not to hope for a year-end rally. He justifies his cautious stance with the tense geopolitical situation and rising government bond yields. Additionally, he points out that the chances of a stock rally in the fourth quarter have decreased significantly. The market situation reflects Wilson's concerns, as the market-wide US S&P 500 index has already experienced a technical correction, at times falling more than ten percent below its 52-week high. Wilson warns that consumer...
Why US equity strategist Michael Wilson is not betting on a year-end rally - pessimistic forecasts for the fourth quarter.
How www.finanzen.net According to reports, Wall Street bear Michael Wilson is not very optimistic about the stock markets at the end of the year. As lead US equity strategist at Morgan Stanley, he warns investors not to hope for a year-end rally. He justifies his cautious stance with the tense geopolitical situation and rising government bond yields. Additionally, he points out that the chances of a stock rally in the fourth quarter have decreased significantly.
The market situation reflects Wilson's concerns, as the market-wide US S&P 500 index has already experienced a technical correction, at times falling more than ten percent below its 52-week high. Wilson warns that consumer and business confidence is falling and earnings revisions are declining, calling into question expectations of a year-end rally. He emphasizes that the effects of the US Federal Reserve's interest rate hikes are just beginning and are already affecting the entire economy.
As investors look ahead to the current earnings season to see how companies deal with headwinds like higher interest rates, Wilson warns that fourth-quarter and 2024 earnings expectations are too high, even in a well-performing economy. He highlights that interest rate-sensitive stocks have underperformed in recent months, while defensive sectors such as energy have outperformed. This shows that the market places more value on growth than on higher interest rates and valuations.
However, there are also opposing views in the market: Wharton professor Jeremy Siegel believes stocks are poised for a year-end rally as he believes bond yields are nearing their peak. He considers the assessment to be convincing and points out that November has been the second best month of the year in the last 25 years.
It remains to be seen whether Wilson or Siegel are right and whether November will prove to be a strong month for the stock markets again this year.
Image source: albund / Shutterstock.com, TunedIn by Westend61 / Shutterstock.com, Inked Pixels / Shutterstock.com
Read the source article at www.finanzen.net