Bloomberg Talks Mike Wilson Talks Staying Bullish on Stocks
Aug 18, 2025
Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, shares his insights on the current stock market landscape amidst economic uncertainties. He maintains a bullish outlook, arguing against the tide of pessimism from other forecasters. The discussion dives into the Federal Reserve's interest rate policies and their effects on inflation and growth. Wilson also highlights trends in tech earnings, showcasing optimistic projections despite recent challenges. His confidence is fueled by an expected recovery in the stock market over the coming year.
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Jackson Hole Could Shift Cut Expectations
- Mike Wilson expects Jackson Hole to keep a balanced tone while the Fed verifies inflation is under control.
- He warns markets will be disappointed if the probability of a September cut falls sharply from ~80–90%.
Earnings Revisions Are Driving The Rally
- Morgan Stanley sees slowing growth and stickier inflation, which explains the Fed's pause this year.
- Wilson highlights that explosive earnings revisions since April, not macro alone, are driving stocks higher.
Monitor Retail Margins For Tariff Pain
- Watch retail earnings for margin pressure from tariffs because many consumer discretionary firms lack pricing power.
- Expect margin impacts to be idiosyncratic and potentially show up in Q3 and Q4 results.