FXStreet reports that Mike Wilson, chief investment officer and chief US equity strategist for Morgan Stanley, believes that the outlook for equities is deteriorating.
“We think the gross slowdown will be worse and last longer than expected as the payback in demand arrives early next year with a sharp year over year decline in personal disposable income.”
“The fundamental picture for stocks is deteriorating as the Fed begins to tighten monetary policy and growth slows further into next year. However, asset prices remain elevated as the upper income cohort of retail investors continues to plow money into these same investments.”