Morgan Stanley: Recovery rally has further to run, so buy stocks | Malay Mail

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SINGAPORE, June 15 — Stock market gains have further to run and investors are still under-pricing the scale of the world’s coronavirus recovery, investment bank Morgan Stanley said in an outlook note. “While the last four months have been exceptional, we think that this cycle has been, and...

The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego, California September 24, 2013. ― Reuters pic

SINGAPORE, June 15 — Stock market gains have further to run and investors are still under-pricing the scale of the world’s coronavirus recovery, investment bank Morgan Stanley said in an outlook note. “While the last four months have been exceptional, we think that this cycle has been, and will be, more ‘normal’ than appreciated,” said Andrew Sheets, the bank’s chief cross-asset strategist.

“We think that stocks and credit will be modestly higher and tighter over the next 12 months,” he said. The bank forecasts the S&P 500 index at 3,350 points and benchmark US 10-year yields at 1.3 per cent by mid-2021. The call, made in a note dated yesterday and distributed today, comes as global markets pull back from a sharp rally that has lifted world stocks about 36 per cent from March lows.Morgan Stanley analysts suggest clients take long positions in US small caps and financials, the euro and emerging market currencies, such as the Indonesian rupiah and Indian rupee, and add a little bit more risk to their credit portfolios.

 

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