According to BlockBeats, on May 19, Morgan Stanley strategist Michael Wilson stated that, due to the recent truce in trade between the U.S. and some countries reducing the likelihood of an economic recession, investors should buy during the decline in U.S. stocks triggered by last Friday's downgrade of the U.S. credit rating.
The strategist believes that the likelihood of a market pullback has increased after Moody's downgraded the U.S. rating, pushing the 10-year Treasury yield above the critical level of 4.5%.
However, Wilson wrote in a report: 'We will be buyers of this decline.' Wilson stated that an encouraging sign is that the earnings season for companies appears to be over, and the uncertainty surrounding tariffs has not had a significant impact. He indicated that even if trade data weakens slightly in the coming months, the recent upward adjustments in corporate profits suggest that the stock market will rise further. (Jinshi)