Stocks still look expensive and valuations look high – Morgan Stanley

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Stocks still look expensive and valuations look high – Morgan Stanley Equities RiskAversion Banks SP500

Stock investors should demand a greater premium for taking on risk

“Investors could be in for more surprises as they continue to overlook the impact of tightening financial conditions. They should be cautious about investing in long-duration or growth-oriented equities, which currently may not offer fair compensation for the risks of rising“Any bear-market rally that may occur in the seasonally strong fourth quarter should be used for rebalancing portfolios and tax-loss harvesting.

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