Posted 11/6/2023, 11:29:00 AM
Morgan Stanley: Last Week's Market Rebound Just a Bear Rally, Not Start of New Uptrend
- Morgan Stanley analysts say last week's market rebound is just a bear market rally, not the start of a sustained uptrend
- They cite weaker earnings revisions and macro data as reasons for caution
- While S&P 500 earnings surprises have been better than average, sales surprises are at multi-year lows
- Q4 earnings estimates have come down substantially since the start of the season
- Morgan Stanley recommends a "barbell" portfolio of defensive growth and late-cycle cyclicals
- They advise stock picking over broad market exposure due to high stock-specific risk