In 2022, Morgan Stanley’s Chief Market Strategist, Mike Wilson, accurately predicted a 20% drop in the S&P 500, becoming bearish on the stock market. Wilson’s team now forecasts a new price target for the S&P 500, expecting continued growth in corporate earnings and a bullish outlook for the market.

Morgan Stanley estimates the S&P 500 surpassed revenue estimates by 2.2% in Q3, with 8% median earnings-per-share growth for the Russell 3000. Wilson’s team predicts 12% year-over-year growth in 2026, 17% in 2027, and holds a positive outlook on the market despite doubts about future interest rate cuts.

Wilson raises his S&P 500 price target to 7,800, implying an 18% upside from current levels. He emphasizes the importance of long-term investing and advises against trying to time the market. Wilson recommends financials and healthcare sectors for stock pickers, noting their reasonable multiples and potential growth opportunities.

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Read more at Yahoo Finance: A Wall Street Analyst Who Correctly Predicted the Stock Market Collapse in 2022 Has a New Price Target for the S&P 500 Index — and It May Surprise You