Stock indices may hit new lows this year, warns Michael Wilson

As stated by Mike Wilson, chief US equity strategist at Morgan Stanley, investors should prepare for more market turmoil as U.S. stock indexes have yet to bottom out this year.

Wilson made a statement, reporting that stock indexes are the last to fall. “June probably was the low for the average stock, but the index, we think, still has to take out of those June lows”, — he said.

Since mid-August, the S&P 500 has been down amid fears of a possible recession. It was influenced by the fact that the Fed stepped up aggression on monetary policy. 

According to Wilson's statement, the index could fall as low as 3,400 points. It may approach 3,000 in case of a recession. It is admittedly a difficult task to predict the bottom of the stock market. Nevertheless, chief US equity strategist at Morgan Stanley suggests that the market will be down and will move in this direction for the next quarter or two.