Chemical Stocks Already Price In Recession, Leaving Worst Behind
- Sector saw worst quarterly decline since 2008 crisis
- Morgan Stanley recommends taking advantage of the selloff
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Chemical stocks, a “good leading indicator” of global recessions, may have already priced in all of the downturn, Alembic Global Advisors wrote in a research note.
An analysis of historical data shows the chemical sector usually starts to price in a recession four to six quarters before it starts, analyst Hassan Ahmed wrote. Most recently, true to form, “we started to see cracks develop in chemical equities around mid-2018, in-line with past history,” he said.