Morgan Stanley strategist predicts short-lived rally

Morgan Stanley strategist Mike Wilson believes that last week's stock market rally was mainly driven by the fall in Treasury yields, rather than any significant positive factors. Wilson points to weak economic data and negative earnings revision breadth as indicators that the earnings recession is not yet over. He predicts that the rally will fizzle out in the next week or two as it becomes clear that the growth picture does not support further Fed cuts or a significant acceleration in earnings per share growth. Wilson suggests that adding additional risk at current levels is less attractive than fixed-income alternatives.