Bloomberg Talks Morgan Stanley's Mike Wilson Talks 2025 Stocks, Volatility
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Dec 13, 2024 Mike Wilson, Morgan Stanley's Chief US Equity Strategist, shares his bullish outlook for stocks by 2025, predicting a rise to 6,500 points. He dives into the interplay of market volatility and economic factors like growth rates and inflation. The conversation reveals the intriguing dynamics between small-cap and large-cap stock performances, along with potential risks from tariffs and immigration policies. Wilson also emphasizes the shifting correlations between bond and stock markets, highlighting the importance of staying alert to these trends as 2025 approaches.
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Market Outlook
- Mike Wilson, despite being known as a bear, hasn't been bearish for 6-8 months.
- He revised price targets up significantly in May, anticipating no growth scare or hard landing.
Market Volatility and Growth
- Wilson anticipates a volatile market in 2025, with uncertainty increasing in the first half.
- He predicts 10% earnings growth, assuming a soft landing and continued inflation decline.
Small Caps vs. Big Tech
- Small caps usually lead in December, but big tech has been in charge recently.
- Wilson suggests small caps could still outperform later in December, driven by increased small business confidence.