Time for a Bull Market Correction?

Mike Wilson, Morgan Stanley's CIO and Chief U.S. Equity Strategist, discusses his belief that a new bull market began in April, following what he identifies as the trough of a three-year rolling recession in the U.S. economy. He attributes this to an inflationary regime post-COVID, leading to hotter but shorter economic cycles, where stocks act as an inflation hedge. Despite this long-term positive outlook, Wilson anticipates a near-term 10-15% market correction due to escalating China-U.S. trade tensions, increased stress in funding markets from quantitative tightening, and a rollover in earnings revision breadth. He advises investors to prepare for this potential correction as a buying opportunity.