Stocks could endure a manageable hiccup in the third quarter of the year, according to Mike Wilson, Morgan Stanley’s chief US equity strategist.
Wilson tells Bloomberg Television in a new interview that Q3 could witness the moderate impact of tariffs.
[adinserter block="1"]“We’ve been saying, the third quarter is probably the quarter of risk, where you’ll see some of this flow through to the cost of goods sold. I don’t think this is a massive correction. It’s a 5-7% correction.
For some companies, it could be bigger, but this is the quarter of risk where the tariffs will start to hit, but the markets are already thinking about this as a temporary impact. And ’26 now, on an earnings growth standpoint, is looking better.”
Wilson says he’s hoping the market pulls back for buy opportunities in an otherwise-promising market.
“This is what the beginning of a new bull market looks like, right? It’s just explosive. It doesn’t let people in. The rate of change is accelerating beyond what you expected. I think the pullback’s going to be short and shallow, maybe there will be another surprise, another test of some kind, that will cause something more severe. But I really can’t see more than a 5 or 10% correction given what I see now in the landscape.”
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