CNBC's "Fast Money" The Market’s Final Hurdle… And Housing Sector Slump 5/22/25
May 22, 2025
Mike Wilson, CIO and chief equity strategist at Morgan Stanley, shares his insights on the financial landscape following President Trump’s tax bill approval. He discusses whether this marks the final hurdle for stocks to reach new heights. The conversation turns to the struggling housing market, with April home sales hitting their lowest since 2009, and speculates on possible recovery signs. Wilson also highlights where he sees significant investment opportunities amidst these shifting market conditions.
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Tax Bill's Mixed Market Impact
- The market gained clarity and pulled back yields with the House passing Trump's tax bill narrowly. - Despite this, stocks drifted late, reflecting uncertainty about the Senate vote and bond market reactions.
Strong Earnings and Market Inflows
- Morgan Stanley expects earnings growth boosted by tax breaks despite tariff shocks. - Market inflows from retail, systematic strategies, and corporates continue to prop up stocks.
Fed Cuts & Market Multiples
- Fed could cut rates 3 to 6 times over the next 12 months even without recession as inflation eases. - Multiple expansion likely limited but rate cuts should prevent sharp valuation drops.