Morgan Stanley’s Wilson Says Bear Market Stock Rally Means It’s Time to Buy Bonds
- Morgan Stanley strategist says traders can play December runup
- Advises investors consider order of cash, Treasuries, credit
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Morgan Stanley’s Michael Wilson predicted the current bear market rally in US stocks and expects it to last further into December. But he’s telling the average investor to buy bonds.
“If you think about bear markets that are punctuated by either an economic or earnings recession, we think we will get at least one of those, the earnings recession,” the firm’s chief US equities strategist told Bloomberg Surveillance on Thursday. “The order of operations is very clear. You want to be cash first, then you want to buy Treasuries -- long duration -- then buy credit and buy equities last.”