NEW YORK: The current rebound in fairness markets will show short-lived, certainly one of Wall Avenue’s most vocal bears stated yesterday, advising buyers to hunt refuge in bonds as financial progress slows.
“The bear market rally is over,” Morgan Stanley chief US. fairness strategist Michael Wilson wrote in a observe to shoppers.
“That leaves us extra constructive on bonds than shares over the close to time period as progress issues take centrestage – therefore our doubling down on a defensive bias.”
Wilson’s thesis is that the financial system is heading for a pointy slowdown, because of a “payback in demand from final yr’s fiscal stimulus, demand destruction from excessive costs, meals and vitality worth spikes from the conflict that function a tax, and stock builds which have now caught as much as demand.” — Bloomberg