Morgan Stanley does not favor the scenario of a recession

(Boursier.com) — Mike Wilson, Chief Investment Officer of Morgan Stanley, indicates, quoted by Bloomberg, that the chances of a recession are still less than 50% in the United States. “It’s not our base case, it’s our bearish case,” the strategist says. However, the risk-reward ratio for investing in the S&P 500 remains, according to him, “rather mediocre”. Wilson currently sees a 35% probability of a recession. The specialist, reputed to be generally bearish, who had well anticipated the stock market fall this year, is therefore more moderate about the hypothesis now widely put forward by experts of a potential recession caused by very rapid monetary tightening by the Fed in a context of record inflation.