This story requires our BI Prime membership. To read the full article,Mike Wilson, Morgan Stanley's chief US equity strategist, says the recent US-China "trade truce" doesn't change the direction of the economy and could set the market up for failure.
He adds that the rally last week upended some of the market's recent leaders, and that trend would also hurt equities if it lasts. Investors badly want a US-China trade deal. But Mike Wilson, the chief US equity strategist at Morgan Stanley, says the recentWilson argues he's seen this movie before, and that it ends with a big market sell-off. That's what happened in December 2018, when theSoon after, global stocks plunged as investors feared a recession was imminent.
"We fail to see any meaningful impact on the real economy in the near term," Wilson wrote in a recent client note. "Without a significant rollback of existing tariffs, we don't see how a 'mini-deal' will change the currently negative trajectory of growth in both the economy and earnings." The biggest winners Friday, he notes, were cyclical and short-term momentum stocks, which investors have been neglecting. Wilson says that hurt the relative performance of a lot of funds, and if they're forced to adjust to changes in market leadership, they'll hesitate to buy.
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:
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.
Next recession: Why it's still likely despite US-China trade agreement - Business InsiderInvestors are underestimating the severity of the US-China conflict and how it might lead to a recession, according to Lazard Asset Management. Life is full of cycles, day and night, love and hate, birth and death, sunny and cloudy, ups and downs, summer and winter, wet and dry, win and loose, now if we can only teach that to all the educated idiots, what a wonderful world it would be! ENJOY!
Source: BusinessInsider - 🏆 729. / 51 Read more »
Why Japanese swords are so expensive - Business InsiderEach sword takes dedication, skill and can take over 18 months to create. The resulting blades can be worth thousands of dollars.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Shopify's director of product explains why it avoids Amazon model - Business InsiderShopify's approach to building an e-commerce empire is quite different from Amazon, Ebay, or other online giants.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Why Activision Blizzard punished esports star for Hong Kong comments - Business InsiderThe video game giant risked alienating a joint-venture partner, an investor/collaborator, and regulators in China. Don’t care about the reason human rights come first 1. Money 2. Money 3. Money Saved you a click. $$
Source: BusinessInsider - 🏆 729. / 51 Read more »
Trump business connections in Turkey, Ukraine raise new concernsDonald Trump is coming under new scrutiny for his reported business dealings in Ukraine and Turkey, with some experts alleging these dealings could be influencing U.S. foreign policy. Journalist Kurt Eichenwald joins Joy Reid to discuss. amjoyshow DON'T WANT WAR, THEN DO WANT WAR, THEN DON'T WANT WAR, THEN DO WANT WAR. amjoyshow Why were small, struggling businesses so important to Tony Soprano? amjoyshow Why are you obsessed
Source: MSNBC - 🏆 469. / 51 Read more »
The Trump administration says more China tariffs could be imposed in December - Business InsiderThe agreement was 'subject to documentation' and could still result in tariff increases in December, Treasury Secretary Steve Mnuchin said Monday. TRUMP the A HOL 'Could be.' With Trump, anything could be. It's all part of his art of the con. He plays the stock market like a orchestra conductor. Good jobs !
Source: BusinessInsider - 🏆 729. / 51 Read more »