A new bull market has begun and is still in the early stages, so buy the dips, top Wall Street analyst says

Finance·StockA new bull market has begun and is still in the early stages, so buy the dips, top Wall Street analyst saysBy Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers , the economy, finance, and housing.SEE FULL BIO Wilson's view is part of an increased sense of optimism among other top Wall Street analysts as fears over tariffs ease with the signing of several trade deals.Nicolas Economou—NurPhoto via Getty ImagesThe stock market selloff in April marked the end of a bear market, according to Morgan Stanley’s Mike Wilson, who said a new bull market has started

Volatility along the way is normal, and the market will ly cool off in the third quarter, he predicted

But investors should keep buying the dip as the bull market is still in the early stages, he added

There’s growing concern that the U.S. may be headed for a recession, but Morgan Stanley’s Mike Wilson has said that the economy was actually in a “rolling recession” for the past three years

It’s over now, and the epic stock market selloff in April, when President Donald Trump shocked investors with his “Liberation Day” tariffs, marked the end of a bear market, he told Bloomberg TV on Thursday. “Now we’re in a new bull market, and capital activity is just another sign that that analysis, or that conclusion, is bably correct,” he added

Wilson, who is Morgan Stanley’s chief U.S. equity strategist and chief investment officer, said any volatility and consolidation along the way are normal, noting that it’s actually preferable to a market that goes straight up in 2020

In fact, the stock market has seen some straight lines lately in form of a V-shaped recovery

But Wilson predicted some stock market moderation in the third quarter, potentially offering a chance to double down on the rally. “I want to be very : it’s still early in the new bull market, so you want to be buying these dips,” he said

Last month, Wilson said in a note that the S&P 500 could reach 7,200 by mid-2026, explaining that he is starting to lean closer to his more optimistic “bull case” scenario

Wilson’s view is part of an increased sense of optimism among other top Wall Street analysts as fears over tariffs ease with the signing of several trade deals

Meanwhile, retail investors have relentless bought stocks whenever they have dipped, helping turbo-charge the market even as institutional investors have taken a less aggressive stance

Buying the dip has paid off so well that it’s actually getting harder to do as more investors try to get ahead of the crowd, fueling faster rebounds. “The half life of dips is getting ever shorter,” Steve Sosnick, chief strategist at Interactive Brokers, told CNBC on Tuesday. “And I think because people are so afraid of missing the dip, they basically rush in at the slightest sign of one.” He cautioned against reflexively buying dips just because a stock is down, saying investors should instead be more judicious and apply some analysis to find real value

Still, the risk is that dip-buyers “catch a falling knife” in the cess, leaving them with stocks that continue on a long-term decline. “The market has a way of making the maximum number of people wrong at the most inopportune time,” Sosnick said

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