October 5, 2025

The new Haussier market has started and is still in the early stages, so buy the DIP, says Top Wall Street analyst

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It is increasingly worrying that the United States is heading for a recession, but Mike Wilson by Morgan Stanley said that the economy was in fact in a “hilly recession” in the past three years.

It’s over now, and the epic stock market sale in April, when President Donald Trump shocked investors from his “Liberation Day” prices, marked the end of a lower market, he told Bloomberg TV on Thursday.

“Now we are in a new bullish market, and the activity of the capital markets is only another sign than this analysis, or this conclusion, is probably correct,” he added.

Wilson, who is the main strategist in American stocks by Morgan Stanley and investment director, said that any volatility and consolidation along the way was normal, noting that it is in fact preferable to a market that increases immediately in 2020.

In fact, the stock market experienced straight lines recently in the form of a recovery in the form of V. At its stockings in April, the S&P 500 had dropped so precipitously and so quickly that it was down almost 20% compared to its previous summit. Since then, the index has increased by 30%, reaching new records and leaving it almost 9% so far this year.

But Wilson predicted a certain stock market moderation in the third quarter, potentially offering a chance to double the rally.

“I want to be very clear: it is still at the beginning of the new Haussier market, so you want to buy these drops,” he said.

Last month, Wilson said in a note that the S&P 500 could reach 7,200,200 by mid-2026, explaining that he is starting to look closer to his more optimistic scenario “Bull Case”.

He cited solid profits as well as the adoption of AI, the low dollar, Trump tax cuts, repressed demand and expectations for Fed rate reductions at the beginning of 2026.

Wilson’s point of view is part of a feeling of increased optimism among other Top Wall Street analysts, because fears of prices are concerned about the signing of several commercial transactions.

Last month, the Chief Investment Stratege of Oppenheimer, John Stoltzfus, traveled his S&P 500 course goal for this year at 7,100 against 5,950, restoring the prospects he initially made in December 2024.

If the S&P 500 reaches 7,100 this year, it would be a gain of around 21% for 2025, marking a third consecutive year with a wave of more than 20%. This has not occurred since the late 1990s, when the American economy and the stock market exploded.

Meanwhile, retail investors bought relentless actions each time they plunged, helping the Turbo loading the market while institutional investors have taken a less aggressive position.

The purchase of the decline has borne fruit so well that it is actually becoming more and more difficult to do while more investors are trying to get ahead of the crowd, fueling faster rebounds.

“The DIP half-life is becoming shorter and shorter,” Steve Sosnick said on Tuesday, chief strategist among interactive brokers. “And I think that because people are so afraid of missing the dip, they rush essentially to the slightest sign of one.”

He warned against the purchase by reflex of drops simply because a stock is declining, saying that investors should rather be more judicious and apply an analysis to find real value.

However, the risk is that the diamage buyers “catch a falling knife” in the process, leaving them stocks that continue on a long -term drop.

“The market has a way to make the maximum number of people who are bad at the most inappropriate moment,” said Sosnick.

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