According to Wall Street's top strategist, Mike
Wilson, U.S. stocks are headed for a nosedive of at
least 20% this year. Although the S&P 500 has
gained 8.4% since the beginning of the year, Wilson
warns that another downturn is looming. In an
interview with Bloomberg TV, he stated that his
base case is for the S&P 500 to end the year at
3,900 points, with his bear case putting the index at
3,600 at the end of 2023. His bull case is for the
S&P 500 to end the year at 4,200.
Wilson, who correctly predicted the selloff in
stocks and was ranked No. 1 in last year's
Institutional Investor survey, has been making the
case for a broad selloff for some time. Despite
previously predicting the timing of a downturn
incorrectly, he stands by his pessimistic outlook for
stocks in Thursday's interview with Bloomberg.
Morgan Stanley believes that equities were due to
take a hit, according to Wilson. He stated that
"we're in the earnings recession camp. So whether
we have an economic recession or not, I think, isn't
as important as the earnings recession, and we're
highly confident that that's going to happen."
Other experts, such as Larry McDonald, editor and
founder of The Bear Traps Report, who famously
called the subprime mortgage crisis, and Bank of
America strategist Savita Subramanian, also take a
bearish view on U.S. stocks. Bank of America
insists that Wall Street is more pessimistic about
stocks than it has been in years.
This story was originally featured on Fortune.com
Social Plugin