Episode
The Market Shift Investors May Be Missing
- Podcast
- Thoughts on the Market
- Published
- Jun 30, 2026
- Duration seconds
- 346
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Summary
Our CIO and Chief U.S. Equity Strategist Mike Wilson explains that gains in the stock market are expanding to more sectors and why investors should position quickly. Read more insights from Morgan Stanley. ----- Transcript ----- Welcome to Thoughts on the Market. I'm Mike Wilson, Morgan Stanley’s CIO and Chief U.S. Equity Strategist. Today on the podcast I’ll be discussing the changing equity market leadership. It's Tuesday, June 30th at 11:30am in New York. So, let’s get after it. Something is happening in plain sight but still isn’t fully appreciated by investors. The market’s leadership is changing. And as usual, by the time everyone agrees that it’s happening, the easier money will probably have already been made. Coming into this year, the primary differentiation to our view was that the economic and earnings outlook were much stronger than the consensus believed. That view was built around a few simple, but powerful ideas: easy comparisons after a three year rolling recession, lean cost structures, pent-up demand, fiscal support from capex incentives and tax cuts, deregulation for the banks, and a monetary backdrop that was increasingly supportive through the liquidity channel. Putting those together, the setup looked like a classic early cycle. Revenue growth returning on top of lean cost structures leads to strong operating leverage and well above trend earnings growth. Fast forward to today, and that’s exactly what has happened. The median stock in the S&P 1500 is now growing earnings at a double-digit pace, the fastest since the post-COVID boom. Revenue growth has returned, with the median stock growing its top line by 7 percent. That is a rolling recovery showing up where many investors still aren’t looking. For much of this year and particularly the pas…