Morgan Stanley’s CIO cautioned investors regarding the risks of President, Donald Trump‘s growth-negative policies such as tariffs and immigration enforcement.
What Happened: The Chief U.S. Equity Strategist and CIO of Morgan Stanley, Mike Wilson, predicted weak stock returns for the S&P 500 in the next 3 to 6 months.
He pointed out that the “equity negative” policies were introduced before the “equity positive” measures had sufficient time to take effect in the form of less crowding out and lower interest rates. He mentioned deregulation, tax extensions, and reduced government spending as some of these ‘equity-positive’ measures.
He cautioned about tough times ahead and predicted the S&P 500 to trade between $5,500-$6,100 in the next 3 to 6 months, with a fourth-quarter price target of $6,500. “Since ...