But U.S. remains favorite stock market
by Sara Sjolin
Morgan Stanley strategists are growing increasingly concerned about the risk of a global recession, slashing forecasts for all major equity markets and advising investors to sell stocks that have recently rallied.
In a report out on Monday, the bank’s global strategy team cut its 12-month target for the S&P 500 index to 2,050 from 2,175, indicating the U.S. benchmark over the next year only will rise 1.4% from its close of 2,022.19 on Friday. This comes after the index rallied 8.4% over the past month, driven in part by a rebound in oil prices and upbeat economic data from the U.S.
However, there’s nothing to indicate the rally will continue, neither in the U.S. or elsewhere, according to the Wall Street bank.