In late 2021, after three consecutive years of double-digit returns by the S&P 500, many Wall Street strategists were sure the stock market would continue to soar in 2022. But Mike Wilson, Morgan Stanley’s chief investment officer and chief U.S. equity strategist, wasn’t so optimistic. Wilson argued that a combination of “fire and ice”—or rising interest rates and fading economic growth—would hurt stock prices and lead to a challenging year for investors.
Every time the stock market rallied throughout the year, Wilson warned that it was nothing but a trap. And he turned out to be right. The S&P 500 ended up sinking roughly 20% in 2022, finishing the year at 3,839—far from Wall Street’s lofty 4,800 average forecast.
