There was a lot debate amongst market watchers over when this bear market will backside, after a turbulent first half of the yr for shares. However Morgan Stanley’s chief funding officer believes that the tip of this bear market will come “fairly rapidly.” Mike Wilson, additionally the funding financial institution’s chief U.S. fairness strategist, instructed CNBC on Friday that is as a result of the financial cycle has been “terribly fast.” “The downturn itself, the V formed restoration … after which the timing of the Fed and … peak employment. So we’re simply ripping by this cycle, method quicker than we have seen in prior cycles,” he instructed CNBC’s “Squawk Field Asia.” “And that is excellent news. As a result of meaning the conclusion of this bear market will come fairly rapidly, you realize, it’ll be painful, however it’ll be fast.” Learn extra Has the bear market hit the underside? Goldman’s Oppenheimer delivers his verdict — and divulges the place he sees ‘nice alternatives’ Is the bear market coming to an finish? Right here’s one indicator execs say to look at intently Citi names its ‘highest conviction concepts’ for the second half of 2022 — and provides one upside of 85% Final month, the S & P 500 fell right into a bear market — or 20% off current highs hit in January — and stays there for now. The Nasdaq and Dow Jones Industrial Common have additionally slid, tumbling round 28% and 16% year-to-date, respectively. It comes after a tough first half of the yr — the worst since 1970 — as recession fears and scorching inflation brought on buyers to flee shares. At what stage will the S & P 500 trough? The S & P 500 closed at 3,863.16 on Friday — and Wilson says that if a recession happens, the trough within the S & P 500 will seemingly be across the 3,000 stage. In a comfortable touchdown situation, nevertheless, by which a recession is prevented, he expects the underside to return round 3,400. Nevertheless, he careworn that the robust greenback poses a big headwind to the index. “The S & P 500 may be very levered to forex,” stated Wilson. “Proper now [the dollar is] up 17% year-over-year, and we expect it might even go greater till the Fed pivots. So that you’re taking a look at someplace between 8% to 10% headwinds for S & P earnings development.” He added that even when there is no recession, there’s nonetheless “significant” draw back earnings danger. “We have been extra bearish on earnings and that is actually the differential,” Wilson stated. Morgan Stanley is at present “very defensively oriented,” Wilson stated, and obese on healthcare, utilities and REITs.