Investors have been buoyed this year by the fact that a mooted recession has failed to materialize. However, Morgan Stanley’s chief U.S. equity strategist, Mike Wilson, says that it does not mean the prospect of one taking place has completely evaporated.
“While the investor sentiment pendulum on a recession arriving in 2023 has swung from roughly ’70/30′ to ’30/70′ over the past 6 months based on our dialogue, there is more debate on whether we have avoided it altogether – i.e., soft/no landing, or if it’s just been pushed out to 2024,” Wilson recently said,
Given the uncertainty about what’s coming next, Wilson expects the market to trade in a “late cycle” manner and he recommends a way to deal with such an environment. “In our view,” says the strategist, “the best way to express that in a portfolio is to hold a barbell of defensive growth (select growth stories and more traditional defensive sectors like Healthcare and Consumer Staples) with…
2023-09-24 18:10:10
Link from finance.yahoo.com
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