Morgan Stanley's Mike Wilson advises against early stock purchases.

Morgan Stanley's chief US equity strategist, Mike Wilson, warns that the recent US rescue for bank depositors does not mean quantitative easing and that credit availability is decreasing for a wide swath of the economy, which may be the catalyst that finally convinces market participants the equity risk premium is way too low. Wilson believes that the risk to the earnings outlook means that the risk/reward in US equities remains unattractive until the equity risk premium is at least 350-400bp.