If you're looking for someone with a bullish take on U.S. stocks, Morgan Stanley Chief Investment Officer Mike Wilson is your guy this week. Speaking on CNBC's Squawk Box, Wilson laid out a remarkably optimistic case for equities, complete with high-teens earnings growth projections and a laser focus on consumer goods stocks.

Tax Cuts Meet Consumer Demand

Wilson's pitch is straightforward: the path forward is "crystal clear," driven by a stabilizing Federal Reserve and legislative tailwinds that should breathe new life into consumer spending. After what he describes as a "rolling recession" in the consumer sector, he sees a perfect storm of positive catalysts converging.

The big one? Tax cuts. "That's an area where it's going to get a big boost from the 'Big Beautiful Bill' from the tax cuts in the first half of this year," Wilson explained. Combine that with falling interest rates and what he calls an "attack on affordability," and you've got an environment where consumer stocks haven't yet priced in the recovery that's coming.

The consumer goods sector has had a choppy ride lately. The Dow Jones U.S. Consumer Goods Index is up 9.62% over the past six months but down 1.40% year-to-date, with a one-year gain of 6.42%. Meanwhile, the ProShares Ultra Consumer Staples (UGE) has struggled, down 8.27% over six months but up 1.68% year-to-date. The iShares US Consumer Staples ETF (IYK) is down 4.97% over six months and off 0.43% year-to-date, with a 5.25% one-year return. Wilson's argument is that these numbers are about to look a lot better.

Earnings Growth And Fed Support

Wilson isn't just bullish on consumer stocks. He's calling for broad-based earnings growth across the market. "The earnings picture is crystal clear to us," he said, projecting growth in the high teens as the rally expands beyond the tech sector that's dominated recent gains.

A major piece of his thesis involves the Federal Reserve. Wilson pointed out that the Fed has started purchasing assets again to stabilize funding markets, a move he characterized as a "wild card" that's now been resolved in favor of bullish investors. "The Fed now is addressing these liquidity concerns… proactively," Wilson noted. In other words, one of the big question marks hanging over the market has been answered, and the answer is good news.

Expect Volatility But Don't Panic

Wilson isn't ignoring risks entirely. He's realistic about the fact that midterm election years tend to bring volatility, and he expects at least one 10% correction along the way. "If we don't have a 10% correction, it would be unusual," he admitted.

But here's the thing: he sees those dips as buying opportunities, not reasons to head for the exits. Wilson dismissed concerns about an AI bubble bursting or a credit market collapse, arguing that it's "too early" in the capital cycle for those kinds of problems to materialize. His view is that growth remains solid and government policy stays supportive, creating a safety net for risk assets.

Where Markets Stand Now

The major indices have been trading in mixed fashion so far this year. The S&P 500 is up 0.63% year-to-date, and the Dow Jones has gained 2.41%. The Nasdaq 100, however, is slightly negative at down 0.07%.

On Thursday, the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, both closed lower. SPY slipped 0.01% to $689.51, while QQQ dropped 0.60% to $620.47. Futures for all three major indices were higher on Friday.

Wilson's message is clear: earnings growth is coming, the Fed has your back, and consumer stocks are positioned to benefit from fiscal stimulus and lower rates. Yes, there will be bumps along the way, but the overall trajectory looks promising. For investors wondering where to put money to work, Wilson's answer is simple: bet on the American consumer.