From BigGo Finance · BigGo Finance · · 1m 10s
Morgan Stanley's Wilson: Equity Pullback Nearing End
Morgan Stanley's Wilson says US stock market pullback ends soon; time to add risk.
In brief
Morgan Stanley's Wilson says US stock market pullback ends soon; time to add risk. Morgan Stanley's Michael Wilson advises investors to add risk as the S&P 500 valuation pullback nears its end. Originally reported by BigGo Finance.
Morgan Stanley's Wilson
Morgan Stanley chief US equity strategist Michael Wilson says the months-long valuation pullback in parts of the US stock market is nearing its end.
S&P 500 Valuation Status
The S&P 500 sits roughly 2% below its record with deteriorating valuations and market breadth.
Quality Stocks Outperform
Quality stocks outperform the equal-weighted index as valuations adjust.
Investor Advice
Wilson advises investors to add risk rather than avoid it by November.
“We advise investors to be ready for either a very rapid reconciliation or a slower bleed into November because in our view, that will be the time to add risk rather than shun it”
AI Investment Growth
AI compute investment by hyperscalers will climb from $980 billion this year to $1.58 trillion in 2027.
S&P 500 Profit Growth
S&P 500 third-quarter profit growth is estimated at 24.6% year-on-year.
Capital Goods Entry Points
Capital goods sector offers entry points with improving earnings momentum.
Key Picks
Alphabet, Apple, Broadcom, and Micron Technology are highlighted as quality picks.
TSMC Results
TSMC reported 68% high-performance computing revenue and 68.7% net profit growth.
What to remember
Morgan Stanley's Michael Wilson advises investors to add risk as the S&P 500 valuation pullback nears its end.
