Wall Street's Top Strategist and Morgan Stanley Warn Investors of S&P 500 Rally Trap

Wall Street's top strategist, Mike Wilson, warns investors to remain cautious despite the recent rally in the S&P 500, citing overvaluations and gains being driven by a limited range of equities. Wilson believes that a resolution to the U.S. debt ceiling talks may temporarily push stocks higher, but it would be a "false breakout/bull trap." While Wilson takes a pessimistic view of U.S. stocks, Bank of America strategist Savita Subramanian has hiked her year-end target for the S&P 500 from 4,000 points to 4,300, citing valuations that argue for price returns of 5% per year for the next decade.