Morgan Stanley CIO sees a ‘bear market bounce’
Stocks have continued their rebound into 2023, delivering one of the best openings to a calendar year since January 2000. Morgan Stanley however believes the gains are just another bear market bounce.
The inverted yield curve in the US, the curious outperformance of gold, and falling demand for oil in the US are three factors that warrant particular attention, Lisa Shalett, Morgan Stanley’s chief investment officer , told investors this week.
Conditions point to high risk of ‘financial accidents’
US stocks appear to have entered the ‘final stages’ of a bear market. But the final low for the S&P 500 is seen around the 3000 to 3400 point level, which would represent a drop of another 16 per cent from last week’s close. Current conditions are such that financial accidents can easily happen, some market watchers warn.
Mutual fund outflow persists in May, inflow for ETFs
Mutual funds saw net outflows last month at a rate of more than one billion euro per day, while firms selling Exchange Traded Funds experienced a small level of net inflows, according to new data from Refinitiv Lipper.
Mutual funds experienced net outflows of 32.3 billion euro last month, compared to net inflows of 2.5 billion for Exchange Traded Funds.