LIVE MARKETS-"We're buyers of pullbacks," says MS
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"WE'RE BUYERS OF PULLBACKS," SAYS MS
Morgan Stanley's Michael Wilson is advising investors to stay constructive about equity markets and buy any pullbacks, as he maintains a bullish outlook for the next 12 months.
The strategist sees recent weakness - sparked by Friday's soft jobs report and a Federal Reserve on hold - as the start of a modest third-quarter consolidation, but not a reversal.
Wilson believes April's "Liberation Day" marked a major and durable low. And while inflation concerns may delay rate cuts, he expects the Fed to eventually pivot as growth slows.
He says tariff-related inflation looks temporary and is even potentially disinflationary in some sectors. And with improving earnings, cash flow growth, and tailwinds from AI and dollar weakness, Wilson is gaining confidence in his bullish view.
"We're buyers of pullbacks," he writes.
(Danilo Masoni)
EARLIER ON LIVE MARKETS:
SMI SLIDES, FINANCIALS LIFT THE STOXX CLICK HERE
BEFORE THE BELL: EYES ON SWITZERLAND, UK MOTOR FINANCE UPDATE CLICK HERE
BUY THE DIP, WE CAN WORRY ABOUT JOBS LATER CLICK HERE
