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Mike Wilson of Morgan Stanley says the US economy has already raced to the middle of a new cycle.
He says that means it s time to de-emphasize some stocks that soared as the economic recovery began.
Wilson suggests these trades as part of a reflation over reopening strategy for outperformance.
The COVID recession and rebound feel like they ve happened in dog years, with the economic and market crash, recovery, and new expansion occurring at unprecedented paces.
Morgan Stanley Chief US Equity Strategist and Chief Investment Officer Mike Wilson says the US economy is firmly in the middle of a new cycle that began only last year. The end isn t in sight, but he says it s time to move away from new-cycle and reopening trades that have played out.
BRYAN R. SMITH/AFP via Getty Images
The US economic recovery is firing on all cylinders, and a handful of charts detail where it s showing up.
Reopening and new stimulus boosted restaurant dining and hotel occupancy in recent months.
Online job ads have handily surpassed pandemic-era levels as firms prepare for an influx of demand.
The US economy is barreling toward a full rebound.
Traditional gauges of spending, business growth, and hiring are flashing their most optimistic readings since the pandemic first roiled the US. Wall Street banks are calling for a blowout GDP report on Thursday. And widespread vaccination suggests the country can fully reopen this summer.
Strong economic data and earnings results helped boost confidence in the progress of the reopening.
Due to vaccine distribution and a broader herd immunity approach, dividends might increase in 2021.
UBS named 16 stocks it expects to offer brisk dividend growth and over 10% upside to price targets.
While fourth-quarter earnings in 2020 set the bar pretty high, the first-quarter season got off to a good start as big Wall Street banks crushed analyst estimates.
JPMorgan surprised analysts by reporting $33.1 billion in revenue, which exceeded the $30.4 billion estimate. Goldman Sachs also beat average analyst estimates by posting $17.7 billion in revenue versus the expected $12.6 billion. Citi came in strong as well.