Morgan Stanley's Wilson Says a 10% Stock Market Correction Is 'Highly Likely'
What are the odds of stocks closing higher by year-end?
Morgan Stanley's Mike Wilson places the odds of stock prices closing higher by year-end at 20% to 25%. He expects a 10% correction before the election due to uncertainty around the US presidential campaign, corporate earnings, and Federal Reserve policy.
What factors are causing stock market uncertainty?
Stock market uncertainty is being caused by factors such as the US presidential campaign, corporate earnings, Federal Reserve policy, and signs of the rally overheating. Rising concerns over these factors, along with seasonally turbulent periods, contribute to market volatility and the likelihood of a significant pullback.
Why does Mike Wilson predict a 10% market correction?
Mike Wilson predicts a 10% market correction due to uncertainty surrounding the US presidential campaign, corporate earnings, and Federal Reserve policy. He believes this uncertainty will cause a choppy third quarter and a highly likely 10% correction before the election.