Prominent US Stock Bear: Bullish on Non-Tech Sector, Market Logic Undergoing Profound Shift

BlockBeats News, July 13th. Michael Wilson, renowned short seller on Wall Street and Chief Equity Strategist at Morgan Stanley, and his team pointed out in their latest research report that a profound transformation is taking place in the U.S. stock market: the baton of earnings growth is being passed from tech giants to a broader set of index constituents.

In the S&P 1500 Composite Index, the median stock's earnings per share (EPS) growth rate has surpassed 10%. Wilson believes that this "rising tide" pattern is mainly driven by the earnings resilience of mid-cap companies. Of particular note is that equal-weighted indices like the S&P 500 have begun to outperform market-cap-weighted indices for the first time since 2022. This implies that while tech giants surge ahead, those traditional industries closely linked to macroeconomic growth are showing stronger defensive qualities and growth potential.