Morgan Stanley: Regardless of the outcome of the U.S. midterm elections, investors should buy U.S. stocks on dips

According to Bloomberg, Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, stated that the U.S. stock market may face several short-term adjustment risks in the future, including the U.S. midterm elections, market concerns triggered by artificial intelligence spending, and liquidity constraints, which could push the S&P 500 index down about 9% from recent historical highs, to 7100 points.

However, he believes these adjustments will create buying opportunities on dips and expects that after the related risks are released, the S&P 500 index is likely to rise further to 8000 points. Historically, since 1950, the U.S. stock market has risen in the 6 months and 12 months following each midterm election, so he recommends buying U.S. stocks on dips regardless of the midterm election results.