Yup. Good call from March 2022.
Sell the rip.
That's the good word after the surprising rally in markets last week, argues one of Wall Street's most vocal bears.
"Bottom line, last week was nothing more than a vicious bear market rally, in our view, and while it may not be completely finished, it is a rally to sell," Morgan Stanley chief investment officer Mike Wilson said in a new note on Monday.
The closely followed strategist thinks there could be another leg lower in markets that persists until mid-April. He recommends getting more defensive in terms of portfolio positioning at the moment.
"With rates markets pricing in a very aggressive Fed pivot, the back end of the market looks full in our view. While this may alleviate some of the downward pressure on equity valuations, the equity risk premium looks far too low to us given the persistent volatility in financial markets, one of the more unstable geopolitical environments we've ever witnessed and rising risk for growth, especially earnings," Wilson added.