MORGAN STANLEY: The stock market just shifted by a magnitude that usually precedes recessions. Here's why it's an ominous sign once again.

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 24 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

Sudden rotations of this magnitude preceded the last two recessions, and Morgan Stanley warns another crisis may be near.

Beginning last week, investors fled stocks with the strongest earnings growth for those that were considered cheap.

He described the status quo before this rotation as a"Goldilocks" scenario. The favored end of the momentum trade was comprised of stocks that promised bond-like protection and the strongest earnings growth. Meanwhile, the short-momentum trade was in companies that were cyclical in nature. This might just be the initial step in a longer downward spiral for growth stocks, and where a possible recession comes into the picture, according to Wilson.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I'd like to ask you for your help getting this moving... mycallingfarm

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

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.

SpaceX may be a $120 billion company if its Starlink global internet service takes off, Morgan Stanley Research predictsFinancial analysts are looking at Elon Musk's plans to surround Earth with thousands of high-speed internet satellites — and they see a lot of green.
Source: BusinessInsider - 🏆 729. / 51 Read more »