Bloomberg TV
- Mike Wilson sees a market rally in the short term, but not enough to pivot from his bearish outlook.
- The rally may be driven by declines in yields and the dollar, the Morgan Stanley strategist said.
- An ongoing earnings recession is driving a bear market in the long term, he added.
Stocks may be rallying, but a bear market unwinding is still on the horizon, according to Morgan Stanley stock strategist Mike Wilson.
In a note published on Monday, the well-known bear said the short-term outlook is positive, though he described the market's recent resilience as running on "borrowed time."
If bond yields and the dollar continue to retreat, then stocks could go higher, with the S&P 500's next resistance level at 4,150, Wilson said, representing 2.5% upside from last week's close.