One of Wall Street's most famous bears just changed the outlook for the US stock market. Michael Wilson (Michael Wilson) of Morgan Stanley, a well-known bear, currently expects the S&P 500 index to rise 2% by June 2025, when he previously thought the index would fall 15% by December.

As the market continued to rise, the strategist's pessimistic expectations for 2023 failed to be realized, and he finally made concessions and raised the target point of the S&P 500 index from 4,500 points to 5,400 points. This made his prediction jump from one of Wall Street's lowest predictions to one of the index's new record predictions.

“In the US, we expect strong earnings per share growth while the price-earnings ratio will be moderately compressed,” Wilson wrote in a report last Sunday, when they were discussing the company's views on various assets in the second half of the year.

In recent months, Wilson has repeatedly insisted on the S&P 500 target of 4,500 points, even though the index has repeatedly reached new highs. He said in March that given the general lack of growth in corporate profits, there is no reason to raise this target. He said last month that he would avoid making major predictions about the direction of the index due to increased economic uncertainty.

Overall, the bank expects a “clear macro environment” to support risky assets in the second half of the year, but Wilson reiterated that as the data becomes more volatile, broader economic outcomes are becoming difficult to predict.

Wilson raised his forecast for the S&P 500 index, making J.P. Morgan's Dubravko Lakos-Bujas (Dubravko Lakos-Bujas) one of the few bearers on Wall Street. He expects the S&P 500 index to drop more than 20% by the end of this year. Deutsche Bank strategists also raised the target point of the S&P 500 index at the end of 2024 to 5,500 points from 5,100 points last Friday.

The Morgan Stanley strategist suggests barbell investing in high-quality cyclical stocks and high-quality growth stocks, and maintaining long exposure to certain defensive stocks, such as essential consumer goods and utilities stocks.

Editor/Jeffrey