Mike Wilson of Morgan Stanley sees a significant rotation back to American shares, and he sees one beaten group as a winner.
“It started with a low-quality set, which we expect-what means a short grip,” said CNBC’s investment director of the company investment. “Fast money“On Monday.” Then we noticed audit factors at Mag Seven actually start to stabilize a little. So, in the last few days, although the shares have been better, the larger the index. How high? 5,900. So we are almost there. “
The main indexes had A significant start of the week. AND S & P 500 acquired approximately 1.8% and closed to 5,767.57-in 6% below the maximum of all time. Meanwhile, To redeem jumped nearly 600 points while Nasdaq composite It grew more than 2%.
“The magnificent seven “ He played a big role on a rally on Monday. Its members include Apple,, Nvidia,, Meta platform,, Amazon,, Alphabet, Microsoft and Tesla. Electric vehicle manufacturer has registered its Best Daily appearance since November.
But Wilson, who is also the main American strategist of American capital, suggests a narrow window for winning. He focused his research note on Monday.
“The stronger seasons, the lower rates and the momentum indicators support our call for a commercial rally of ~ 5500,” he wrote. “Weaker dollar and stabilizing the Mag 7 EPS [earnings per share] Audits can take capital back to the US. Behind the tactical set, volatility They will probably persist this year. “
And, they will not exclude new lowest for the year.
“No matter what we get now, we think that they will probably fade in the end, in May and June,” he added. “Then we will probably make a permanent low later in the year.”
According to Wilson, market weakness is mainly related to the basics and technical data.
‘Has nothing to do with the tariffs’
“The reason why the markets are lower during the last three or four months has nothing to do with tariffs,” Wilson said. “Mostly refers to the fact that the revision of earnings have overturned. The Fed stopped reducing rates. You had a more severe immigration implementation. [Department of Government Efficiency]. All these things are negative growth. “
Wilson’s S & P 500 The goal at the end of the year is 6,500, which implies almost 13% profit from Monday closure.
“Can we make a new maximum in the second half of the year while people are looking forward to 2026? Yes,” Wilson said.
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