Morgan Stanley on shares, say pleasure, purchasing going down at an “inopportune” time

Morgan Stanley analysts had been sternly disapproving of the bull transfer for shares for, neatly, it sort of feels like endlessly.

And nonetheless are. From a Tuesday notice:

  • “Investor sentiment and positioning has grew to become 180 levels at an
    inopportune time, in our view”

MS cite considerations that give a contribution to their “2H23 warning” as:

  • fading fiscal strengthen
  • much less liquidity
  • the affect of
    inflation falling quicker than anticipated … “We see possibility
    that decrease costs translate to falling earnings expansion over the following 4
    months. Declining import/export costs are telling us the similar

And, additionally:

  • “We discover it
    laborious to get on board with the present pleasure and narrative
    supporting it. Whilst breadth has stabilized, it stays a long way from
    supportive of upper costs”

MS do appear rusted directly to the undergo view. they do make some legitimate issues. However shares have shrugged those off this yr.


Differing view from Goldman Sachs right here:


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