VOO - Market Correction 'Highly Likely' Before 2024 Election Says Morgan Stanley CIO | Benzinga
Investors should be ready for a "choppy" third quarter as uncertainty over corporate earnings, Fed policy and the U.S. election create the perfect storm for a market correction.
In a Monday interview, Morgan Stanley's Chief Investment Officer Mike Wilson said the market should brace itself for a 10% to 15% correction between now and November.
This means that the S&P 500 could be close to its 2024 ceiling. The index hit its historical ceiling on Friday after a positive jobs report lit up investor enthusiasm.
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Companies with bad earnings reports "are going to get punished," Wilson told Bloomberg Television.
These include most of the S&P 500 companies that are not in the top 50.
This is what's been happening this year for most companies, outside of the small group of large-caps that actually have positive earnings. Currently, only 17% of S&P 500 companies actually beat the index in the past month.
The S&P 500 is closely monitored through ETFs such as the SPDR S&P 500 ETF Trust (NYSE:SPY), Vanguard S&P 500 ETF (NYSE:VOO), and iShares Core S&P 500 ETF (NYSE:IVV), providing various avenues for investment in its comprehensive performance.
"The average company does not have good earnings results," ...