U.S. equities are overbought after their recent surge in November and risk a short-term correction, Mike Wilson, Morgan Stanley's chief U.S. equity strategist, told Bloomberg.
The Analyst Thesis: The market has become frothy after rallying in the last couple of weeks triggered by positive vaccine news. The S&P 500 and the Dow have gained close to 11% since then.
Vaccine news was a catalyst to get people excited about the market recovery. With the U.S. elections behind, the market is looking forward to the economy’s reopening. There is still a slight risk from the Senate runoff.
What’s happening is a …