Morgan Stanley: Buy US Stocks on Dips Regardless of Midterm Election Results

Odaily reports: Mike Wilson, Chief US Equity Strategist at Morgan Stanley, said the US stock market may face several short-term correction risks in the future, including the US midterm elections, market concerns triggered by AI spending, and liquidity constraints, which could push the S&P 500 down about 9% from its recent historical high to 7,100 points. However, he believes these corrections will create opportunities to buy on dips, and expects that once the relevant risks are released, the S&P 500 could rise further to 8,000 points. Historically, since 1950, the US stock market has risen in both the 6 months and 12 months following every midterm election. Therefore, he recommends buying US stocks on dips regardless of the midterm election results. (Bloomberg)