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”
—
MS do seem rusted on to the bear view. they do make some valid points. But stocks have shrugged these off this year.
—-
Differing view from Goldman Sachs here: