The Case for Staying Bullish on Equities

Mike Wilson argues the recent stock correction was more significant than most realize and that earnings are accelerating. He raises the S&P 500 price target to 8,300 and recommends adding exposure to industrials, financials, and consumer discretionary during pullbacks. The rolling recovery, AI as a margin tailwind, and a broadening capex cycle support his bullish view. - The S&P 500 correction earlier this year was deeper than headline indices suggest, with many stocks seeing 20%+ drawdowns. - Earnings are accelerating with median S&P 500 surprise of 6% and revision breadth rising to 22%. - Mike Wilson raised the 12-month S&P 500 price target to 8,300 based on higher earnings forecasts. - The rolling recovery from the recession is still underappreciated and supports earnings growth. - AI is more of a margin tailwind than a labor disruption, with enterprise adoption still early. - Liquidity from the Fed is a near-term risk but the Fed has tools to address it. - Investors should use corrections to add exposure to industrials, financials, and consumer discretionary. - The biggest risk may be being too cautious after the market has already discounted risks.