Bloomberg Talks Chief US Equity Strategist at Morgan Stanley Mike Wilson
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Aug 6, 2025 Mike Wilson, Chief US Equity Strategist at Morgan Stanley, shares his bullish outlook for the market heading into 2026. He discusses the dramatic influence of technology and AI on consumer behavior and market dynamics. Wilson analyzes current economic uncertainties and sector opportunities, while emphasizing the importance of earnings revisions. The conversation also dives into the impact of the AI cycle on stock performance, spotlighting key players and the implications of a weaker dollar on market evaluation.
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Markets Bottom on Bad News
- Markets bottom on bad news, with earnings revisions as a key driver.
- The April lows represented a durable market bottom with a strong positive earnings revision cycle like post-COVID and post-9/11.
Fed Cuts and Earnings Revisions
- Equity markets anticipate Fed rate cuts well before they occur.
- Earnings revisions are likely to rise as the Fed cuts rates gradually into improving margins.
Sector Opportunities to Watch
- Favor sectors with strong recent earnings revisions like financials, industrials, and software.
- Look for opportunities in lagging sectors impacted by tariffs and rolling recessions as they may rebound with rate cuts.