A top Wall Street analyst has declared that a new bull market has begun and is still in its early stages, urging investors to adopt a “buy the dips” strategy to capitalize on the ongoing rally. Morgan Stanley’s Mike Wilson, the firm’s chief U.S. equity strategist and chief investment officer, made the comments on Bloomberg TV, stating that the sharp selloff in April—triggered in part by Donald Trump’s “Liberation Day” tariffs—marked the end of the prior bear market [1]. Wilson emphasized that the current environment is characterized by a “rolling recession” that had persisted for three years but is now over, with the market entering a new phase of growth [1].
According to Wilson, while some volatility and consolidation are to be expected, they are normal in the early stages of a bull market and even preferable to a straight-line rally like that seen in 2020. He also predicted that the market could moderate in the third quarter, presenting buying opportunities for investors. The S&P 500 has already rebounded sharply from its April lows, surging nearly 30% and setting new records [1]. Wilson has also raised his price target for the index, forecasting it could reach 7,200 by mid-2026 [1].
His bullish outlook aligns with a broader shift in sentiment on Wall Street. Oppenheimer’s chief investment strategist, John Stoltzfus, recently increased his S&P 500 target for 2025 to 7,100 from 5,950, reinstating a more optimistic view first expressed in December 2024. If realized, this would represent a 21% gain for 2025 and a third consecutive year of more than 20% gains for the index—something not seen since the late 1990s [1].
Retail investors have played a significant role in fueling the market’s momentum, buying stocks aggressively during dips, which has led to faster rebounds and shorter-lived pullbacks. Steve Sosnick of Interactive Brokers noted that “the half-life of dips is getting ever shorter” as more investors rush in at the first sign of a decline [1]. While this activity supports the current bull environment, Sosnick also warned against reflexive buying, urging investors to focus on value and fundamentals rather than simply chasing market noise.
Despite the optimism, analysts have cautioned that while the bull market is in its early stages, investors should remain selective and avoid overexposure to speculative or unverified assets. The strategy of buying the dip, while effective, carries the risk of catching a falling knife if investors misjudge the timing or underlying fundamentals [1].
The current rally has also benefited from a combination of factors, including strong earnings reports, AI-driven growth, a weaker dollar, tax cuts under the Trump administration, and expectations for Federal Reserve rate cuts in early 2026. These factors, combined with robust investor appetite and easing trade concerns, have contributed to a resilient market environment.
As the bull market continues to gain traction, the focus remains on maintaining a disciplined approach to investing. The market’s ability to absorb corrections and rebound quickly suggests that the trend is likely to persist, but investors are advised to remain cautious and strategic in their approach. With the S&P 500 and Nasdaq hitting fresh records and the Dow showing similar strength, the signs of a sustained bull run are evident.
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[1] title: New Bull Market Has Begun, So Buy the Dips, Top Wall Street Analyst Says (url: https://fortune.com/2025/08/09/new-bull-market-buy-the-dips-stock-outlook-sp500/)
