Selling U.S. stocks and buying U.S. bonds Wall Street will step on the pit again in 2023

Sina Financial News At the end of 2022, the entire Wall Street, whether it is the stock and debt department, giant companies or niche institutions, is all in a low mood. At that time, everyone was preparing for a rainy day, thinking that a recession was coming. Mike Wilson, a short Morgan Stanley equity strategist who quickly became the darling of the market, had predicted a sharp drop in the S&P 500. Bank of America’s Meghan Swiber and his colleagues told clients to prepare for a plunge in Treasury yields. Once again, the market consensus has gone wildly wrong. What should have risen fell or moved sideways, and what should have fallen kept rising. The S&P 500 rose more than 20% and the Nasdaq 100 soared more than 50%, its biggest annual gain since the dot-com bubble burst. Much of this reflects the impact of the economic forces unleashed during the pandemic. Boosting consumer demand, which boosts economic growth and inflation, has puzzled even the brightest minds in finance, as well as policymakers in Washington and around the world.