Morgan Stanley, Chief U.S. Equity Strategist Mike Wilson
The bank is still underweight small caps -- for now. Morgan Stanley’s view is that the global economy will bottom out in the first quarter while the U.S. will trough in the third quarter, “which means domestically-oriented companies probably underperform,” Wilson said in an interview on Bloomberg TV Wednesday.
But some time early next year, maybe during the second quarter, small caps “become probably pretty attractive again,” Wilson said. He notes that the Federal Reserve is probably going to “lean more dovish” when it raises rates next week. “That means maybe they are not going to do as many rate hikes next year.”
This article provided by Bloomberg News.