Morgan Stanley Expects 16% Drop In S&P 500 Earnings: Here's What The Investment Bank Is Bullish On
Portfolio Pulse from Bhavik Nair
Morgan Stanley predicts a 16% drop in S&P 500 earnings per share this year, potentially slowing the ongoing rally. The investment bank is bullish on equities in Japan, Taiwan, and South Korea, and recommends an overweight position in developed-market government bonds, including long-dated Treasuries and the dollar.
June 05, 2023 | 6:45 am
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NEGATIVE IMPACT
Morgan Stanley's prediction of a 16% drop in S&P 500 earnings may negatively impact the Invesco QQQ Trust Series 1 (NASDAQ:QQQ).
Morgan Stanley's prediction of a 16% drop in S&P 500 earnings may lead to a slowdown in the ongoing rally, which could negatively impact the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) as it tracks the performance of the Nasdaq-100 index, which is correlated with the S&P 500 index.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Morgan Stanley's prediction of a 16% drop in S&P 500 earnings may negatively impact the SPDR S&P 500 ETF Trust (NYSE:SPY).
Morgan Stanley's prediction of a 16% drop in S&P 500 earnings may lead to a slowdown in the ongoing rally, which could negatively impact the SPDR S&P 500 ETF Trust (NYSE:SPY) as it tracks the performance of the S&P 500 index.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Morgan Stanley's recommendation of an overweight position in long-dated Treasuries may positively impact the SPDR Portfolio Long Term Treasury ETF (NYSE:SPTL).
Morgan Stanley's bullish stance on developed-market government bonds, including long-dated Treasuries, may lead to increased demand for these assets, which could positively impact the SPDR Portfolio Long Term Treasury ETF (NYSE:SPTL) as it tracks the performance of long-dated US Treasury bonds.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Morgan Stanley's recommendation of an overweight position in long-dated Treasuries may positively impact the iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT).
Morgan Stanley's bullish stance on developed-market government bonds, including long-dated Treasuries, may lead to increased demand for these assets, which could positively impact the iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT) as it tracks the performance of long-dated US Treasury bonds.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80