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- Morgan Stanley: The biggest sell-off since February is coming and it’s going to hit the average investor hard
Morgan Stanley: The biggest sell-off since February is coming and it's going to hit the average investor hard
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Loading...Morgan Stanley believes the dramatic drops in some high-flying technology stocks this month is further evidence the stock market will go lower.
"The weaker earnings beat from several Tech leaders and outright misses from Netflix and Facebook were simply additional support for our [defensive] call," chief U.S. equity strategist Michael Wilson said in a note to clients.
And the average investor could suffer even more this time, Wilson said.
"We think a coming correction will be biggest since February, although it could very well have more of a negative impact on the average portfolio if it is centered on Tech, Discretionary, and small caps," the note said.
Wilson noted the relative valuation between growth and value stocks was only higher during the dot-com bubble.
Wilson reaffirmed his overweight ratings for utilities, energy, industrials and financials sectors, which should outperform in a more difficult market environment, he said.
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