Morgan Stanley’s Mike Wilson Sees Few Signs of Bear Market in Stocks

Chances of a full-fledged stock market rout are low, even though poor seasonality and a murky growth outlook are likely to limit US equity gains through the rest of the quarter, according to Morgan Stanley’s Mike Wilson.

The strategist, who correctly predicted the recent downdraft in US stocks back in July, says a major collapse is unlikely with traders still on edge following last week’s selloff. The nuanced view is a contrast from the bold, bearish calls that made Wilson famous in recent years. But he still sees little room for upside in the S&P 500 Index, projecting the benchmark will scuffle in a range between 5,000 to 5,400 — which at the lower end is down about 7% from Tuesday’s levels, and at the upper end is roughly flat.