Morgan Stanley: It’s Too Early to Be Bullish on the Market Now

Jinse Finance reported, citing market news released by Bloomberg analyst Walter Bloomberg, that Michael Wilson of Morgan Stanley has warned that, given the ongoing trade tensions between China and the US, weak earnings forecasts, and credit pressures, it is still too early to be bullish on the market. He stated that if the tensions persist beyond November, the S&P 500 Index could fall by as much as 11%. Wilson hopes that before confidence is restored, trade tensions will ease more clearly, earnings per share trends will stabilize, and liquidity will become more abundant. However, he expects the market to recover within 6-12 months. John Stoltzfus of Oppenheimer Holdings is also optimistic about the market, noting that the earnings of S&P 500 constituents have risen by 16% so far, exceeding expectations.