5 main points from Morgan Stanley’s 2019 strategy:
1. Cyclic peak and turn down the US dollar
2. The convergence of rates of return in the US and Europe
3. Advance currency dynamics
4. The lagging dynamics of US stocks and high-yield US bonds
5. Shares «value» (Value) is better than shares of «growth» (Growth)
Earlier, similar forecasts for 2019 were issued by Goldman Sachs. But MS especially distinguished themselves in terms of stocks by market, raising the recommendation to two levels at once — from “underweight” to “overweight” (bypassing “neutral”).
True, here you need to make a collection of a reservation for hotheads. Such recommendations are issued with a horizon of 12 months and do not mean that you need to immediately run and shake up portfolios right tomorrow. But you need to keep in mind these long-term trends, selling and buying new positions in the portfolio.
And the last in this post. We don’t recall cases when stocks trade by themselves, while US stocks fall. In case you do not agree, Just on the next upward movement there will be new leaders.