© Reuters. Morgan Stanley prefers high quality names in the long term, says bear market not over
In Morgan Stanley’s “30 for 2025” observe launched on Tuesday, fairness strategists led by Michelle Weaver acknowledged that the present bear market isn’t over.
Weaver stated the agency expects earnings to drop “nicely beneath consensus expectations,” with its base case for 2023 at $195. “We imagine this can be adopted by a stronger earnings image in 2024,” Weaver wrote.
“We’ve got additionally recognized potential cyclical and secular drivers of the subsequent bull market in equities, together with extra accommodative financial coverage as inflation slows,” added Weaver.
“A extra secure start line for shopper stability sheets; pent-up demand in funding/capex and in sure elements of shopper providers; a worldwide progress restoration led by economies which have lagged because the pandemic; the re-emergence of constructive working leverage; Synthetic Intelligence and its diffusion throughout sectors; and reshoring.”
Morgan Stanley believes high quality outperforms in the long term, and firms in its “30 for 2025” embrace Alphabet (GOOGL), Costco (COST), JPMorgan (JPM), lululemon athletica (LULU), MasterCard (MA), Microsoft (MSFT), Nike (NKE), and Visa (V), amongst others.
By Sam Boughedda
