$IVV.ETF Morgan Stanley's chief U.S. equity strategist: This correction in U.S. stocks is closer to the end than just the beginning!
His core view is:
The S&P 500 has returned to its previously identified support range of 7,100–7,300.
The semiconductor sector has fallen about 40% from its June high.
Market positioning and investor sentiment are nearing capitulation levels, but have not quite reached them.
If markets fall again over the next few weeks, that could instead be an opportunity to increase exposure to risk assets.
He favors high-quality cyclical stocks whose valuations have already pulled back while earnings expectations remain strong, especially in the industrials sector.
His core view is:
The S&P 500 has returned to its previously identified support range of 7,100–7,300.
The semiconductor sector has fallen about 40% from its June high.
Market positioning and investor sentiment are nearing capitulation levels, but have not quite reached them.
If markets fall again over the next few weeks, that could instead be an opportunity to increase exposure to risk assets.
He favors high-quality cyclical stocks whose valuations have already pulled back while earnings expectations remain strong, especially in the industrials sector.