Morgan Stanley Declares New Bull Market in US Economy
New York, Saturday, 9 August 2025.
Morgan Stanley’s Mike Wilson sees the US economy in a new bull market post-April’s ‘silent recession’, potentially reshaping investment strategies and market expectations.
The End of a ‘Silent Recession’
Mike Wilson, the Chief U.S. Equity Strategist at Morgan Stanley, has claimed that the U.S. economy entered a new bull market following the conclusion of a ‘silent recession’ that spanned three years and ended in April 2025. This announcement has garnered significant attention as investors are keenly looking for signs of recovery and future growth prospects [1].
Market Trends and Investor Sentiments
Wilson’s assertion comes at a critical juncture, backed by growing investor confidence and positive shifts in capital markets activity. The current market uptrend could potentially bolster institutional risk appetite, influencing a wider spectrum of asset classes including equities and cryptocurrencies like Bitcoin and Ethereum [1][4]. However, Wilson warns of possible volatility and market corrections in the third quarter of 2025, advising investors to view such dips as buying opportunities within this early-stage bull market [1][4].
Macroeconomic and Policy Landscape
For the bull market to sustain its momentum, Wilson mentions the necessity for a positive growth rate change from an earnings perspective and supportive fiscal and monetary policies. As of now, federal policies appear accommodating, with market anticipations of potential rate cuts in the near term, which could further facilitate this growth trajectory [1][2]. Michael Gapen, Morgan Stanley’s Chief U.S. Economist, reiterated that the economic outlook remains under constant evaluation, highlighting a dovish tone from the July 2025 Federal Open Market Committee (FOMC) meeting [2].
Looking Ahead: Economic Projections
While investors remain optimistic about the ongoing bull market, the path to sustained growth is lined with challenges. The U.S. GDP is reportedly growing at a nominal rate of 5.5%, yet potential economic imbalances and inflationary pressures are subjects of ongoing scrutiny [3]. The Federal Reserve’s decisions in the coming meetings, along with geopolitical developments and trade policies, will be pivotal in shaping the investment landscape through the rest of 2025 and beyond.