Famous US Stock Bear: Bullish on Non-Tech Sectors, Market Logic Undergoing Profound Shift

On July 13, Michael Wilson, the well-known US stock bear and chief strategist at Morgan Stanley, along with his team, pointed out in their latest research report that the logic of the US stock market is undergoing a profound shift: the baton of earnings growth is being passed from tech giants to a broader range of constituents. In the S&P 1500 Composite Index, the median earnings per share (EPS) growth rate of its components has exceeded 10%. Wilson believes that this 'broad-based rally' pattern is primarily driven by the earnings resilience of mid-cap companies. Notably, the S&P 500 Equal Weight Index has begun to outperform the market-cap-weighted index for the first time since 2022. This implies that while tech giants continue to surge ahead, traditional industries closely tied to macroeconomic growth are showing stronger defense and growth potential.