Stock market strategies for 2020 after December rally: Morgan Stanley - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Morgan Stanley has pinpointed 3 strategies for stock traders to use as they decide what to buy in 2020. Here's what they are — and which stocks fit into each.

Mike Wilson, Morgan Stanley's chief investment officer and chief US equity strategist, has some ideas about that. He's long been bearish on stocks, and while he isn't betting on a dramatic improvement in the stock market or global economy — but he still thinks the right tactics can create an edge.

"We see some risk of disappointment in the [economic] data as we see payback for demand pull forward ahead of tariffs and margin pressures in the US," he wrote in a note to clients. "However, we think central bank liquidity and the removal of tail risks are offsetting forces that should support equities in the near term."

In a recent client note, Wilson shared three strategies his team has formulated for beating the market in 2020. They are as follows:Wilson says investors can bet on growth without investing in stocks that have already gotten too expensive. "As economic growth has slowed, the price investors are willing to pay for durable growth has risen, making it hard to find value within growth," he wrote.

He's recommending companies with strong returns on invested capital since the Global Financial Crisis, and price-to-earnings growth ratios that reflect low long-term growth forecasts. All of those companies have market capitalizations of at least $5 billion, and none are cyclicals. They are also all rated "Overweight" by Morgan Stanley.

 

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

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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

Stock market 2020 forecasts, S&P 500 year-end targets from Wall Street - Business Insider'Uncertainty is higher than normal': What 14 Wall Street giants are forecasting for the stock market in 2020, and where they say you should put your money
Source: BusinessInsider - 🏆 729. / 51 Read more »

Digital banking app MoneyLion is launching stock-trading in 2020 - Business InsiderMoneyLion, an online lending startup that raised over $200 million touting itself as an affordable banking option, is adding stock-trading in 2020
Source: BusinessInsider - 🏆 729. / 51 Read more »