Odaily Planet Daily reports that Morgan Stanley strategist Michael Wilson stated that due to recent trade truces between the United States and some countries reducing the likelihood of an economic recession, investors should buy during the U.S. stock market decline triggered last Friday by the downgrade of the U.S. credit rating.
The strategist believes that after Moody's downgraded the U.S. rating, pushing the 10-year Treasury yield above the critical 4.5% level, the stock market is more likely to pull back.
However, Wilson wrote in a report: "We will be buyers of this decline." Wilson indicated that an encouraging sign is that the corporate earnings season seems to have ended and tariff uncertainties have not had a significant impact. He said that even if trade data weakens slightly in the coming months, the recent upward revisions in corporate profits suggest further stock market gains. (Jin10)