Morgan Stanley CIO Michael Wilson Says There’s Too Much Optimism Over Markets Right Now


Kay Smythe News and Commentary Writer
Font Size:

Morgan Stanley’s Chief Investment Officer Michael Wilson said Tuesday that there is too much optimism in stock prices right now.

“At current prices, markets are now expecting a meaningful re-acceleration in growth that we think is unlikely this year, especially for the consumer,” Wilson wrote in a note Tuesday, shared by Bloomberg. “Potentially softer September and October data is not priced into many stocks and expectations.”

Wilson’s warning flies in the face of the bizarre antics on Wall Street, which seems to think the economy is doing great (which it is, if you have a Wall Street income and live inside of your own butt). But a few other individuals anre echoing Wilson’s concerns.

Bank of America Corp.’s Michael Harnett said stocks will face a pullback from the risk of a harder economic landing. JPMorgan Chase & Co.’s Mislav Matejka warned that there are no more safety nets to cushion equities, despite complacency within stock sentiment, Bloomberg noted.

“The bottom line is that at this stage in the cycle, the economic data can be conflicting and uncertain for both the bulls and bears,” Wilson continued in his note. “During such periods, price action tends to influence sentiment and positioning more than normal.” (RELATED: Financial Expert Trolls LeBron James, Calls Out US, And Forecasts China’s Financial Collapse All In One Tweet)

In early August, Wilson said he was convinced that equities are in a “boom-bust” position, according to Fortune. Fiscal policy has allowed our economy to grow, apparently, which has tricked many into thinking we’re not heading for recession.