Wall Street's Top Strategist Acknowledges Mistake in Stock Market Prediction

Mike Wilson, chief investment officer for Morgan Stanley, has admitted that he was wrong about his bearish forecast for a plunge in U.S. stocks as the S&P 500 is close to erasing its decline from 2022. Wilson had warned that the rally in equities was a mirage, but the current rally has proven too durable for his forecast. However, he remains pessimistic about 2023 earnings as inflation falls faster than expected, which could impact companies' ability to keep prices high. Despite revising his outlook, Wilson still sees warning signs ahead.