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Mike Wilson Doubles Down: Rally ‘Just Another Bear Market Trap’
"Reality" is coming for 2023's early stock rally.
That's according to Morgan Stanley's Mike Wilson, who last week warned that the bank's earnings model suggests profits are likely to contract more sharply than analysts and investors expect.
In a Monday note, Wilson reiterated the point. "Cost growth is rising faster than sales growth for ~80% of S&P 500 industry groups [and] as a result, margin pressure is worsening," he said.
As a reminder, profit growth for corporate America is expect
Matador was feeling bearish that he could handle the Bull
H-Man, the chart does suggest that when EPS slides, the Fed will pause, then pivot and ease. The question becomes how far down the EPS sliding board before the pivot?