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Mike Wilson from Morgan Stanley have been more constructive on equity markets than the consensus, on the premise that this recession would be one of the steepest on record, but the health crisis would invoke a monetary and fiscal policy response like we’ve never seen before. 

Key quotes 

“As a result of last week’s actions by the Fed and the market’s reaction to it, we are raising our year end S&P 500 price target to 3000 from 2700 with a bull case of 3250 and a bear case of 2500.”

“If there’s one lesson we’ve learned during this financial repression era, it’s that when risk premium appears, you better take it before it disappears.”

“We suspect first quarter earnings season, which begins this week, will bring generally bad news. This could lead to a higher than normal number of surprising price moves when companies report.”