On May 19, Morgan Stanley strategist Michael Wilson stated that investors should buy during the U.S. stock market decline triggered by the recent U.S. credit rating downgrade, as recent trade truces with some countries have reduced the likelihood of an economic recession.
The strategist believes that the possibility of a market pullback is greater after Moody's downgrade of the U.S. rating, which pushed the 10-year Treasury yield above the critical level of 4.5%.
However, Wilson wrote in a report: "We will be buyers of this dip." Wilson noted that an encouraging sign is that the corporate earnings season appears to have ended, and trade uncertainty has not produced significant impacts. He stated that even if trade data shows slight weakness in the coming months, recent corporate earnings upgrades suggest further stock market gains. (Jinshi)
