HomeTop U.S. NewsMorgan Stanley’s CIO Mike Wilson Predicts 10% Stock Market Correction

Morgan Stanley’s CIO Mike Wilson Predicts 10% Stock Market Correction

Morgan Stanley’s chief investment officer (CIO) Mike Wilson issued a warning to traders in a recent interview with Bloomberg, saying that a 10% stock market correction is a likely outlook before the end of the year.

Wilson said that several factors, such as the upcoming presidential elections in the US, Federal Reserve policy, and corporate earnings, will cause the stock market to take a step back.

“I think the chance of a 10% correction is highly likely sometime between now and the election,” Wilson told Bloomberg Television.

Wilson is also bearish on the chances that the stocks will close the year above their current prices, setting them at 20% to 25%

“Your likelihood of upside from now until year end is very low, much lower than normal,” Wilson explained while adding that the third quarter will be “choppy.”

However, Wilson believes that this should be good news for investors, giving them an opportunity to “buy into the market.” Still, he recommends bypassing indexes and investing in individual stocks.

The S&P 500 recorded a 0.10% gain or 5.66 points on Monday, which marked another record close for the benchmark index. It was the 35th session in 2024.

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