Morgan Stanley’s top US stock expert, Mike Wilson, thinks the stock market might take a small hit this summer. He’s calling the third quarter the “quarter of risk.”
A Minor Correction Expected
Wilson told Bloomberg that the impact of tariffs will likely cause a moderate market dip. He doesn’t foresee a major crash, predicting a correction of around 5-7%, although some companies could see bigger drops. He believes the market is already anticipating this temporary impact and that 2026 is looking good for earnings growth.
A Buying Opportunity?
Wilson sees this potential pullback as a chance to buy stocks. He describes the current market’s rapid growth as typical of a new bull market, noting that it often doesn’t give everyone a chance to get in. While he acknowledges the possibility of further surprises that could lead to a more significant correction, he doesn’t expect a drop exceeding 10%.