Morgan Stanley sees stock rally before ’19


The winter holidays might not be so miserable after all for stock investors. So say Morgan Stanley strategists, whose warning about a “rolling bear market” seemed to pay off this week after growth stocks led a slide in equities. While underperformance in growth shares will likely persist, stocks may
rally before year-end amid cheaper valuations, a supportive earnings season and more favourable seasonality, analysts led by Andrew Sheets wrote in a note.
“There is a plausible ‘year-end rally’ story here,” though the bank isn’t positioning for it just yet, they said.
“Earnings season may give some respite from the very ‘macro’ storylines of Fed policy, trade tensions and poor market liquidity.”

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