A chief Wall Street strategist explains why the real story behind the market's rally may be the improving economic data, not the Fed | Markets Insider

Morgan Stanley's Andrew Sheets says the market rally has less to do with the actions of the Fed and is more about economic data trends improving.

The chief cross-asset strategist said in a Morgan Stanley podcast that"the last three months have been one of the best runs of economic data" he's ever seen. "This improvement, rather than any new policy that central banks have been enacting, might be the real story of this summer's strength," he said.

But he called this a"double-edged sword," because if economic data slows in the fall, Fed policy may not be enough to hold markets up.While many economists point to the Fed's low interest rate policy to explain the stock market's rise upward despite the seemingly weak economy, Morgan Stanley's chief cross-asset strategist said he believes better-than-expected economic data may be more responsible.

"As much as the steady rise of markets seems disconnected from the conditions in the real economy, I'd argue that actually they're more closely related. And going forward, that is a double-edged sword," Andrew Sheets said inThe strategist explained that while economic data has been weak, the trend has been improving and numbers have continued to surpass consensus expectations.

Plenty of V-shaped charts out there. reopening

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European markets seen slightly lower as Wall Street tumble roils global stocksEuropean stocks are set to open slightly lower Friday after a sudden retreat at the end of Thursday's session, as a sharp decline in Wall Street tech stocks spooks global markets. Cancel trumps free presidency. It’s a golf tour gone awry kuku27 Wall Street walls are now having trouble w/ weakening of foundations. it was long overdue. There could be bubble burst too
Source: CNBC - 🏆 12. / 72 Read more »

Wall Street plunges as economic data indicate slowing recovery; tech stocks falterHeavyweights such as Apple, Amazon, Facebook and Microsoft all suffered steep losses after high-flying stock valuations lost momentum. And so it begins... ETTD And you listened to Orangeman’s bulls..t about a V shaped recovery. Hahahahaha. Not going to happen until Biden gets elected and leads us out of this pandemic. Hey Kushyass, we’re still waiting for that miracle July recovery. Uh, it’s SEPTEMBER Kushyass. The Markets go up The Markets go down You do know that, right? It will not effect realDonaldTrump 2nd Term. Guarantee it.
Source: MSNBC - 🏆 469. / 51 Read more »