Morgan Stanley to investors: Stock market downturns present buying opportunities

Michael Wilson, strategist at the American banking giant Morgan Stanley, claimed that potential declines in stocks following Moody's downgrade of the U.S. credit rating would present a buying opportunity for investors.

Wilson, who argues that the trade truce between the US and China has reduced the likelihood of a recession, stated, "We see any potential drop following a credit rating downgrade as a buying opportunity."

According to Bloomberg's report, Moody's move has raised the 10-year bond yields above 4.5%, increasing the risk of a pullback in stocks. Additionally, S&P 500 futures also declined by 1.2% on Monday. This move has rekindled concerns about the attractiveness of US assets amid ongoing uncertainties in global trade.

Wilson stated that companies were not seriously affected by the uncertainty regarding customs duties in the last reporting period, and in fact, there was an increase in the number of companies with raised profit forecasts. The strategist mentioned that trade data might show some weakening in the coming months, but "the possibility that the market might evaluate this weakening as temporary and ignore it due to the US-China trade truce has increased."

Published: May 19, 2025 15:35