The Wall Street analyst who called this stock-market rout sees another nasty drop for the S&P 500

Wilson predicts that the S&P 500 may fall to 2,450 or 2,500 in the coming weeks

There is more pain in the pain trade ahead.

That is according to Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, who said, during an inter- view on CNBC midday Thursday, that a current market rebound belies a market that is badly damaged and ready to sink further.

Wilson describes current conditions as a “rolling bear market,” which began in February, and predicted that the S&P 500 index could fall to between 2,450 and 2,500. That represents a roughly 8% to 10% drop from the broad-market benchmark’s current levels. “And we think we get their in four to eight weeks,” Wilson said.

“Risk-reward remains unattractive for us,” he said. The Morgan Stanley analyst added that the current slump in
stocks that wiped out the year-to-date return in the S&P 500 and the Dow Jones Industrial Average in a power- ful move lower on Wednesday, “may last a bit longer.”

 

 

Read the full article by Mark DeCambre here on Marketwatch

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