Morgan Stanley's chief investment officer, Mike Wilson, believes equity markets have already priced in the geopolitical tensions with Iran. In an interview with Bloomberg Daybreak, Wilson discussed corporate earnings, Federal Reserve policy, and the evolving risk landscape.
"The market is looking past the Iran situation," Wilson said, noting that investors are focusing more on company fundamentals and monetary policy than on the conflict.
He pointed out that earnings season has been robust, with many companies exceeding expectations despite headwinds from inflation and higher interest rates. The Fed's next moves remain a key variable, but Wilson suggested that the central bank is likely to pause rate hikes if economic data softens.
Wilson's outlook suggests a resilient market that has absorbed geopolitical shocks, though he cautioned that a prolonged escalation or supply disruptions could still pose risks.