Although Morgan Stanley Strategist Mike Wilson admitted he was wrong about the 2023 stock rally, he predicted a drop in stocks in 2024, assuming that companies’ price-setting power would decline.
Morgan Stanley Strategist Mike Wilson, who correctly predicted the selling wave in the S&P 500 last year, admitted that his predictions were wrong this year.
Predicting that the S&P 500 will remain at the level of 3 thousand 900 this year, Wilson made the statement “We were wrong” when the index increased by 19 percent to around 4 thousand 560 points. In his note to his customers, Wilson stated that “2023 witnessed a higher valuation story than we expected” and made a 4,200 forecast for 2024, which is about 8 percent below the current level.
Wilson stated that the pricing power of companies will decrease with the decrease in inflation and stated that they maintain their pessimistic stance about their 2023 profitability.
JPMorgan Strategist Kolanovic remains pessimistic
Another strategist, Marko Kolanovic, who made a pessimistic forecast for stocks for this year, maintains his stance.
JPMorgan Strategist Kolanovic believes the lagged effects of aggressive rate hikes by central banks around the world will increase volatility in stock markets across the globe. Kolanovic stated that the sales wave is coming, but when it will come is uncertain.