Morgan Stanley strategist Michael Wilson recently warned that another surge in oil prices is currently the biggest risk facing US stocks. He advised investors to use energy stocks to hedge portfolio risks. The strategist said that further increases in oil prices could push up bond yields and ultimately force the Federal Reserve to act as Federal Reserve Chairman Kevin Walsh works to pull inflation back to target levels. “At that point, the pressure to deal with it will fall more on the Federal Reserve than on the Treasury,” he said. “We have no doubt that the Federal Reserve will respond eventually, but it may be until further market turbulence occurs.”

Morgan Stanley strategist Michael Wilson recently warned that another surge in oil prices is currently the biggest risk facing US stocks. He advised investors to use energy stocks to hedge portfolio risks. The strategist said that further increases in oil prices could push up bond yields and ultimately force the Federal Reserve to act as Federal Reserve Chairman Kevin Walsh works to pull inflation back to target levels. “At that point, the pressure to deal with it will fall more on the Federal Reserve than on the Treasury,” he said. “We have no doubt that the Federal Reserve will respond eventually, but it may be until further market turbulence occurs.”