Morgan Stanley analysts have been sternly disapproving of the bull move for stocks for, well, it seems like forever.
And still are. From a Tuesday note:
- “Investor sentiment and positioning has turned 180 degrees at an inopportune time, in our view”
MS cite concerns that contribute to their "2H23 caution” as:
- fading fiscal support
- less liquidity
- the impact of inflation falling faster than expected ... "We see risk that lower prices translate to falling revenue growth over the next 4 months. Declining import/export prices are telling us the same thing"
And, also:
- "We find it hard to get on board with the current excitement and narrative supporting it. While breadth has stabilized, it remains far from supportive of higher prices"
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MS do seem rusted on to the bear view. they do make some valid points. But stocks have shrugged these off this year.
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Differing view from Goldman Sachs here: