CryptoWorld News reports that Andrew SliMON, Senior Investment Portfolio Manager at Morgan Stanley Investment Management, said that investors should prepare for a pullback in the U.S. stock market and act decisively when fear reaches its peak. He noted that the current strong earnings of companies are colliding with accumulated risks, and that most of the optimistic earnings sentiment has already been priced into the market. SliMON believes that the stock market, especially the so-called “Big Tech Seven,” has already risen sharply, which increases the risk that even if earnings remain solid, they may not be enough to keep pushing stock prices higher. He said that if unexpected bad news emerges, a pullback or correction may be seen, because positions have become very aggressive. This kind of pullback helps reset overly optimistic market sentiment. He added that the likelihood of a burst of panic in the stock market will create buying opportunities for investors and advised them to stay patient rather than put new funds in at current levels.

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