Morgan Stanley’s Wilson says a 10% fall in S&P 500 by US election is ‘highly likely’

Read full post at forexlive.com

Wilson
spoke
in
an
interview
with
Bloomberg
TV,
citing
uncertainty
over
when
the
FOMC
will
cut
rates,
firms
facing
diminished
pricing
power,
resulting
an
increased
likelihood
of
disappointing
earnings
results.

• “The
  average
  company
  has
  not
  had
  good
  earnings
  results,”
• the
  big
  gain
  in
  the
  S&P
  500
  YTD
  2024
  has
  been
  powered
  by
  a
  small
  number
  of
  companies
• price
  to
  earnings
  multiples
  have
  been
  rising,
  “Valuations
  to
  me
  look
  very
  unexciting”

Wilson
has
recently
lifted
his
base-case
12-month
forecast
for
the
S&P500
in
a
year,
to
5,400
points,
from
his
previous
forecast
of
4,500.

—

As
an
aside,
UBS
is
looking
for
a
good
earnings
season: