Michael Wilson, a strategist at investment bank Morgan Stanley, believes that economic uncertainty and expected weaker results from American companies will prevent further growth in the S&P 500 for the rest of the year, reports Bloomberg.
The aforementioned strategist, known for his "bearish" view, predicts that the S&P500 will move between 5,000 and 5,400 points. That means the index will rise by about 1 percent at most, or fall by 6.4 percent.
This is due to the unclear picture of the US economy emerging from the published data, as well as the expected "seasonal" lowering, rather than raising, of analysts' corporate profit forecasts.
A Morgan Stanley strategist pointed out that while the bond market has priced in the Fed's delay in easing monetary policy, stock market prices still don't reflect that.
Michael Wilson once again pointed out that the best investment in the stock market is defensive, that is, relatively resistant to economic downturns, companies with good profit prospects and strong balance sheets.
