The recent rebound in U.S. stocks is a good opportunity to sell and position more defensively, according to one of Wall Street’s most vocal bears.
“Last week was nothing more than a vicious bear market rally,” Morgan Stanley’s chief U.S. equity strategist Michael Wilson wrote in a note. “While it may not be completely finished, it is a rally to sell.”
The pessimistic outlook follows a rebound that saw the S&P 500 index gain 6.2% last week, the steepest weekly advance since November 2020, even as the Federal Reserve raised rates and confirmed its hawkish turn, while the war in Ukraine continued to rage.