After a weak year end in 2018, the stock swings in January appear to have dropped to tighter waters again. But Morgan Stanley's chief financial engineer believes that investors should be able to " throw the wheel right now.
Mike Wilson, a strategic leader at the US bank, Morgan Stanley, believes that the performance of US stock market is unlikely to continue. Instead, the expert will advise not only that it is certain, but even the market route.
Too often the dangerous bull
"We've been close to a growing and more dangerous bull," Wilson said. A bull is a dangerous animal, bulls should go down, it's struggling for a meter rodeo. Although Wilson does not expect the price of stock to be discounted at present – in fact, he believes that his / Most market is still at market – he thinks the air is now too ill for a & # 39; maintenance of prices.
"We think it's better now and relax for the next rodeo," instead of living in the market for a long time. As far as possible, the strategist strategist believes.
The rabbit is not short
As reasons why it does not believe in rising up-to-date market, Wilson is running by the other, the current balance charts. The marks from the varied season were explained, he explained. He also sees the longest closure in the history of the US as a major concern on the markets. Although the US President had Donald Trump On Friday, an agreement was made to the case that stopped stopping. Some of the United States rules are closed for three weeks, but may have been damaged. "We believe that a three-week government revival will take full advantage of economic activity," he warned in this regard.
As a result of the events, Morgan Stanley has decreased the GDP predictions for its first season from 2.5% to 1.7% and expects economic data, profits and growth to be measured.
There is a month as well as Mike Wilson in the US Army Reserve. Although there is some consideration that deer may come before the end of the reduction in total property, which could have a positive impact on its market. However, it will take time to have any impact, fear of Wilson.
The only essential step at this stage, according to Wilson, is the decision that the Exchequer Reserve is to decide; withdraw from Hawk's situation and train efforts to normalize his balance. However, he believes that the Deer does not appear to be complete. Instead, the middle-class bank will look back from its tight rule as "tapering." "Still going on, however, is to make it tight, but less so that its impact on stock markets is damaged, and the effects are no longer broadly appearing just in due course. " says the expert.
In the market of its members
Wilson has been among the bears for a long time. Back in the fall, Morgan Stanley's strategist warned that the sale in the markets was just a start and would get much worse. It was right: On December 24th, US stock markets came to a low level, the official announcement of officially-marketed markets at Christmas Eve, after the number of the US, S & P 500 have delivered 20% of its additions.
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