Morgan Stanley cautions against owning overcrowded stocks for risk of high valuation, volatility

Owning overcrowded stocks could increase volatility and lead to muted portfolio gains, according to Morgan Stanley. The Wall Street firm studied the 70 largest hedge funds based on assets under management, and identified Russell 1000 stocks with the highest percentage of public float owned by them, based on the most recent 13F filings.

"Crowded trades come with the risk of overvaluation and increased volatility as it may be more difficult to attract the marginal investor, while avoiding overcrowded stocks can provide investors with an opportunity to capture unrecognized value when paired with strong fundamentals," Morgan Stanley strategists said in a note to clients.

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

The power sector is 'transforming,' Morgan Stanley says, naming global stocks set to rise 40%'Global power markets have surprised on multiple fronts, and investors are navigating a new normal in the power value chain,' Morgan Stanley's analysts said.
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »

Morgan Stanley says these tech stocks are table-pounding buys ahead of earningsMorgan Stanley says there's a slew of tech stocks that are well positioned heading into earnings.
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »