Morgan Stanley Doubles Down: Bull Market Has Legs—Volatility Could Fuel 15%+ Surges

Wall Street’s bullish case isn’t dead—it’s reloading. Morgan Stanley strategists argue today’s market chop sets the stage for double-digit gains, with volatility acting as a catalyst rather than a threat.

The twist? Traders who mistake turbulence for trouble may miss the upside. ’Markets don’t die of old age,’ quips one analyst, ’they’re murdered by central banks—and the Fed’s still playing nurse.’

Key levels to watch: A decisive breakout above current resistance could confirm the 15%+ projection. Meanwhile, hedge funds quietly rotate into sectors poised to benefit from the next liquidity wave. Typical Wall Street—talking fear while buying greed.

Morgan Stanley’s Bull Market Outlook

As of 2025, Morgan Stanley believes the bull market endures through market fluctuations which have shown significant volatility. A “pause” year with expected single-digit gains is how the Applied Equity Team predicts 2025 will play out for most investors.

Andrew Slimmon, Head of Applied Equity Advisors Team at Morgan Stanley Investment Management, stated:

The S&P 500 reacted sharply to trade tariffs in April with its price hitting bear market levels until it surged 10% when some restrictions were removed. The market demonstrates this reaction indicating the bull market remains active through a cyclical readjustment period.

Opportunity in Market Downturns

Analysis of historical data stands behind the argument that the current bull market continues. Research by Morgan Stanley reveals important indicators for near-future market growth during periods of market volatility.

According to Andrew Slimmon, “when stocks drop by 15% as they did in early April investors should consider boosting their equity investments.”

Investors should boost their equity investments as stock prices fell to a 15% drop during early April. During the past 70 years, the S&P 500 dropped more than 15% from peak on eighteen occasions generating an average one-year stock market performance of 14%.

Current market volatility affects crypto investors through helpful behavior patterns which lead to more secure investments when times are uncertain. Many investors want to protect their crypto holdings but still explore upcoming chances during this point in time.

Sentiment Cycles and Bull Market Extension

The bull market continues to run because investor euphoria experienced disruptions from recent events yet this interruption creates beneficial long-term outlooks. Labelling these recent events as disturbances according to Sir John Templeton’s cycle theory suggests they might extend the current bull market into the future.

Bank of America’s survey reveals market sentiment hit its three-decade low in April which suggests future potential growth for traditional and cryptocurrency markets.

Navigating Future Risks

During extended market upturns protecting crypto assets remains vitally important even though the bull market continues to persist. Both rising inflation and the Federal Reserve’s heavy-handed approach create the most significant threats to equity markets as well as underwater crypto adoption at present.

Andrew Slimmon stated:

For those concerned about market volatility and cryptocurrency adoption challenges, understanding these broader market dynamics provides valuable context for investment decisions during this continuing bull market. Morgan Stanley’s analysis offers a RAY of hope amid current uncertainty and reinforces that investment risks can sometimes present unexpected opportunities.