Investors should be happy with the gains they reaped from a January rally that wasn't justified by fundamentals, according to Lisa Shalett.
Investors should be happy with the gains they reaped from a January stock market rally that wasn't justified by fundamentals, according to Lisa Shalett, chief investment officer, wealth management at Morgan Stanley. "The market is extraordinarily overbought," Shalett said in a phone interview. "We know we broke through some positive technicals. We think a lot of that is being driven by liquidity. But we think folks buying in here are buying into yet another bear market rally.
She sees a central bank able — thanks to reasonably strong economic growth — to keep rates elevated after being forced to hold them artificially low to support a fragile economy. In turn, that will make the S & P 500's valuation near 19 times earnings hard to support because of deteriorating corporate fundamentals. Low rates, in contrast, were supportive of higher valuations. "So the market assumes that's where were going back to.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Apple's long-term positives outweigh rare earnings miss, Morgan Stanley saysApple's top and bottom line misses don't change the underlying bullish thesis for the company, Morgan Stanley analysts said.
Read more »
Stanley Black & Decker dives after Q4 results beat expectations, but 2023 outlook is well below forecastsShares of Stanley Black & Decker dove 4.6% in premarket trading Thursday, after the tools maker reported fourth-quarter results that beat expectations but...
Read more »
Stanley S. Schor, retired professor, biostatistics pioneer, clinical researcher, author, and veteran has died at 100He was known for a his sense of humor, generosity, and intelligence. Friends called him 'one of the smartest, warmest, funniest persons we have known.'
Read more »
Did Morgan Freeman Say Black History Month Is 'Ridiculous'?Actor Morgan Freeman said on '60 Minutes' that he finds the concept of Black History Month to be 'ridiculous.'
Read more »
USC overcomes early injury to Josh Morgan in win over Washington StateUSC's frontcourt shows resilience after Josh Morgan goes out early with an injury, but it wasn't a completely smooth win against Washington State.
Read more »