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During Wednesday’s interview on Bloomberg, Morgan Stanley’s Chief Investment Officer (CIO) Mike Wilson said that the market is overbought and the market is probably a little bit overvalued quite frankly because interest rates now are finally starting to catch up.

The US-based banker also expected pullback while saying, “Bull markets tend to overshoot a little bit in the short term, any kind of pullbacks will probably be bought.”

“We’ve had a big move, and we have to digest some of this, but that’s okay that’s what bull markets do,” Mr. Wilson further said.

FX implications

Although everybody on the floor is fearful of the market’s correction, vaccine hopes and the expectations of the US covid stimulus package keep the bulls hopeful.

Read: S&P 500 Futures flirt with record high above 3,650 even as market optimism fizzles