- Wilson was previously known for his bearish market calls throughout much of 2024 and early 2025
- He believes the bear market is over, and that markets transitioned into a new bull market as of April
- According to Wilson, 10-year yields need to stay below 4.5% and positive growth momentum is necessary to keep the bull phase going
Mike Wilson, Chief US Equity Strategist and Chief Investment Officer at Morgan Stanley, announced that he believes we’re now in a new bull market. This is quite the change of stance considering he was previously known for his bearish market calls throughout much of 2024 and early 2025.
During the ‘Bloomberg Open Interest’, Wilson talked about how the economy has been in a rolling recession for three years, with different sectors struggling at different times. He believes this downturn finally ended in April, when the last round of tariffs caused the market to hit bottom and start a new bull market.
Wilson believes the bear market is over, and that markets transitioned into a new bull market as of April. Generally speaking, a healthy bull market allows volatility and consolidation, and he anticipates similar patterns ahead.
Wilson also drew a comparison to spring 2020, when Morgan Stanley went bullish before consensus and the market then went on a strong and steady climb with only small dips. He expects the same thing to happen again.
As his interview continued, Wilson acknowledged the existence of some ‘speculative excess,’ citing examples such as over-extended valuations and renewed interest in meme stocks. However, he categorizes these behaviors as a normal feature of the initial stages of a bull market.
What a “healthy” bull market looks like. Wilson says they need volatility and consolidation. Here’s our analysis of Bitcoin’s ‘calm bull run.’
Also, according to Wilson, 10-year yields need to stay below 4.5% and positive growth momentum is necessary to keep the bull phase going.
What this means for your portfolio
If Wilson’s analysis is correct, the market is undergoing a regime shift where investor sentiment and engagement are returning to normal. This transition is marked by a move away from defensive caution toward a more measured optimism.
His recommended focus on sectors such as financials, industrials, and low-multiple technology companies points to a broadening market rally that extends beyond just AI-led companies. If the assumption is correct, this could mean that investors will start spreading their money around to a wider variety of stocks.
Still, considering Wilson was very bearish before, some crypto enthusiasts take his predictions with a dose of skepticism.
What about crypto? Wilson has a macro view. But here’s the specific battle brewing between Bitcoin and the altcoins right now.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
