Morgan Stanley: As Moody's downgrades the U.S. rating, investors can buy U.S. stocks on dips

ChainCatcher news, according to Jinshi reports, Morgan Stanley strategist Michael Wilson stated that due to the recent truce in trade between the U.S. and some countries reducing the likelihood of an economic recession, investors should buy during the decline in U.S. stocks triggered by the downgrade of the U.S. credit rating last Friday.

The strategist believes that after Moody's downgraded the U.S. rating, pushing the 10-year Treasury yield above the critical level of 4.5%, the likelihood of a market pullback is greater.

However, Wilson wrote in a report: "We will be buyers of this decline." Wilson noted that an encouraging sign is that the corporate earnings season seems to have ended, and the uncertainty around tariffs has not had a significant impact. He stated that even if trade data weakens slightly in the coming months, the recent upward revision of corporate profits indicates that the stock market will continue to rise.