Bear Market Rally On Borrowed Time, S&P To 3400: Wilson
US equities may loiter around current levels for a while, but another swoon is coming, likely following Q2 earnings season.
That's the message from Morgan Stanley's Mike Wilson, who on Monday noted that revisions breadth has finally turned negative. "It's been a slow bleed," he remarked.
The overarching question is whether the near 20% drawdown on the S&P (figure below) was enough to account for the risk to earnings from margin headwinds and a decelerating economy. If the answer is "yes,"
Not to mention that fed members ability to brake via jaw boning the market to into a a strata that they see as beneficial to their goals is a headwind that hangs over this described borrowed time,
SPX at 3400 in mid- to late-August, eh? Just in time for Jackson Hole.
bad optics for sure, Prestwick … Powell likely wouldn’t be allowed to leave JH unless he announced a “Pause” under those circumstances…the question is will inflation decline enough btw now and then to credibly allow the announcement …