Morgan Stanley analysts are joining the global recession bandwagon as they slash their market outlook for the S&P from 2175 to 2050. They are advising that investors sell stocks that have recovered in this latest rally. Accordingly to Morgan Stanley this rally has run its course and is on the final stages. Their market outlook is stocks will fall from shortly. They are not alone in their outlook.
In their comments they indicated: “Weaker growth forecasts and rising political risk lead us to close our positive tactical stance and lower exposure in global equities,” the analysts said in the note. “The probability of a global recession has risen.”
Market Outlook – Global Recession
They anticipated that the risk of a global recession was 30%. However they also indicated that the USA remained their favorite equity market and cautioned investors they they would need to be selective in stock choice. Meanwhile they are increasing holdings of cash, Japanese government bonds and US Treasurys.
Market Outlook – Bearish
Many analysts are bearish on the outlook for the economy but whether they are right or not remains to be seen. Slow growth is probably with us for the coming year, if not into 2017 as well.
Beat The Bear Trade Ideas
If Morgan Stanley and other analysts are right, and stocks will decline as global economies enter a recession, there is no reason to let a bear market ravage an investment portfolio. There are any number of trade ideas investors might consider………..the rest of this Beat The Bear Strategy and Trade Ideas article is for FullyInformed Members.
Market Outlook: Beat The Bear Trade Strategies
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.