RiskReversal Pod Mike Wilson On The Fed's Latest Rate Cut and What's Next In 2026
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Oct 30, 2025 
Mike Wilson, CIO and Chief U.S. Equity Strategist at Morgan Stanley, shares insights on the macro landscape. He discusses the Fed's recent rate cuts and their implications for the labor market, emphasizing small business hiring and potential recession bottoming. Wilson highlights the significance of US-China relations, Nvidia's role, and forecasts a 20% EPS growth by 2026. He also warns about deflation risks while suggesting equities as a hedge against inflation. The conversation explores sector outlooks, particularly energy and healthcare, for the coming years.
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Earnings Could Reaccelerate Sharply
- Wilson sees potential for ~20% EPS growth if a new cycle and inflation arrive. He links earnings upside to revenue inflection and operating leverage from lean corporate cost bases.
Position For Operating Leverage
- Watch for operating leverage as companies run lean and adopt AI efficiencies. Position for revenue rebounds to translate quickly into margin expansion.
S&P Versus Gold Signals Policy Confidence
- S&P vs. gold ratio signals shifting confidence in policy and growth. Wilson notes the ratio hit deep lows and is now rebounding as markets accept growth-oriented policies.