Market jump after Fed rate hike is a ‘trap,’ Morgan Stanley’s Mike Wilson warns

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Market jump after Fed rate hike is a ‘trap,’ Morgan Stanley’s Mike Wilson warns investors

• Morgan Stanley’s Mike Wilson believes stocks are on a collision course with more pain due to the economic slowdown.
  
• The firm’s chief U.S. equity strategist and chief investment officer said on CNBC’s “Fast Money” that investors should resist putting their money to work in stocks despite the market’s post-Fed-decision jump.
  

Morgan Stanley is urging investors to resist putting their money to work in stocks despite the market’s post-Fed-decision jump.

Mike Wilson, the firm’s chief U.S. equity strategist and chief investment officer, said he believes Wall Street’s excitement over the idea that interest rate hikes may slow sooner than expected is premature and problematic.

“The market always rallies once the Fed stops hiking until the recession begins. … [But] it’s unlikely there’s going to be much of a gap this time between the end of the Fed hiking campaign and the recession,″ he told CNBC’s “Fast Money” on Wednesday. “Ultimately, this will be a trap.”

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