Morgan Stanley: Liquidity Crunch Is the Main Threat Facing U.S. Stocks
Svmuu News: Mike Wilson, Chief Investment Officer and Chief U.S. Equity Strategist at Morgan Stanley, stated that liquidity—rather than interest rate hikes—is the primary risk facing the U.S. stock market in the near term. He noted that the size of the Reserve Management Program has fallen by about 75% from its peak, and the volume of Treasury repurchase agreements has also shrunk by 50%. Wilson expects the U.S. stock market to experience volatility in July and possibly a pullback, with the next leg of the earnings-driven bull market likely to be delayed until liquidity headwinds subside. (Jin Shi)
Source:Odaily · Source Link
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