The chief United States equity strategist for Morgan Stanley, Michael Wilson has said that this might be the time to jump on to the stocks again after there was a plunge in the stock market into the bear market as there was a single day slump that was the sharpest since the crash of 1987.
The analysts have said that they are now trading a bit below the downside cage on S&P 500 and believed that it was time to begin adding to the equity risk for the long term investors as per the analysts.
The strategists have said that on the basis of the analysis, recent drops of the S&P 500, from the peak it had reached on 19th of February has been overdone and is representing on the outlier which may point to the opportunity for the investors.
On this Thursday, the Dow Jones and S& P 500 had dropped by the biggest single day percentage since the crash which had taken place in the 19th of October on 1987. The slump for equity indexes is coming majorly as there are fears of the coronavirus and a few other jitters which include the precipitous fall of crude oil in the week and the uncertainties which are there regarding the 2020 elections which are going to take place later in the year. There are companies had said that the recession is the greater likelihood of the outbreak of COVID-19, which had originated from the infectious diseases originating from Wuhan had been spreading in over 100 countries all over the world and has shut the world’s major industries down and is further shutting the domestic markets down.