According to Morgan Stanley’s Mike Wilson, a bear market may still be in store despite current stock market rallying. Despite bond yields and the dollar index dropping on Friday, Wilson believes that without further declines of these markets, the bear market rally will fail. He sees an earnings recession continuing to affect stock markets, causing reported profits to exceed cash flow which may not be sustainable. Ultimately, the direction of the bear market depends on how fundamentally sound it is and time will tell.
