Investors are ‘far from out of the woods’: Morgan Stanley chief investment officer

Morgan Stanley Wealth Management’s chief investment officer Lisa Shalett sees real rates and China’s weak economy as the biggest short-term risks,

“We believe the complex crosscurrents that have impacted stocks for most of 2023 are likely to persist, validating a cautious response to the “all-clear” signal. We are far from out of the woods, and we prefer an active approach to risk management. Consider preparing for rangebound US stock indexes, neutralizing extreme sector and factor overweights and balancing offense and defense while focusing on quality… The 10-year real rate rose above 2.

“The median S&P 500 stock’s return has sharply become more micro-driven this year, representing alpha opportunity for hedge funds and mutual funds … Reflecting the fertile stock picking environment, mutual fund and hedge fund favorites have outperformed in recent months.

“The University of Michigan’s consumer sentiment index was unexpectedly revised down to 69.5 in August from a nearly two-year high of 71.6 in the prior month. One-year inflation expectations edged up to 3.5 per cent year-over-year, a three-month high. Meantime, the average inflation forecast over the next five years was stuck at a still-high 3.0 per cent for the third straight month. U.S. gas costs have steadily climbed over the past few weeks and are now at the highest since last autumn.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Egypt Stocks Hit Record High as Investors Seek Inflation OffsetEgypt’s benchmark stock index hit a record high, spurred by investors looking to hedge against surging inflation driven by a series of currency devaluations and the fallout from Russia’s invasion of Ukraine.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »