Morgan Stanley prefers quality cyclicals post-election
According to the firm, the long leg of the Republican win trade did not see significant outperformance leading up to the election day on Nov. 5.
The election results have further bolstered Financials, strategists note, with expectations of deregulation adding to its appeal. On the other hand, Wilson and his team advise caution regarding tariff-exposed consumer stocks, anticipating continued underperformance until there is more clarity on tariff policies.
Small caps and lower-quality equities, which could have been expected to outperform following the election, are showing a negative correlation to rates in the current later-cycle environment. This sensitivity to rising rates could restrain their relative performance.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ulta : 3 key investment issues ahead of investor day according to Morgan StanleyUlta : 3 key investment issues ahead of investor day according to Morgan Stanley
Read more »
Caterpillar shares slide after Morgan Stanley downgrades stock to 'underweight'Caterpillar shares slide after Morgan Stanley downgrades stock to 'underweight'
Read more »
Autodesk: A 'Top Pick' by Morgan Stanley With Promising Growth PotentialStocks Analysis by MarketBeat.com (Leo Miller) covering: Autodesk Inc. Read MarketBeat.com (Leo Miller)'s latest article on Investing.com
Read more »
Morgan Stanley sees stabilizing economy boosting cyclical stocks, names its favoritesCyclical stocks could benefit as economic data continues to outperform, the firm says.
Read more »
Morgan Stanley expects a beat and raise quarter from this chip stockMorgan Stanley expects a beat and raise quarter from this chip stock
Read more »
Morgan Stanley tops estimates on better-than-expected wealth management, trading and banking resultsMorgan Stanley has several tailwinds in its favor, from high stock values to a rebound in investment banking and strong trading activity.
Read more »