Morgan Stanley’s Wilson Says Take Profits on Defensive Stocks
- Strategist turns neutral on the group relative to cyclicals
- Jobs data remains key for stock markets into the year end
Michael Wilson
Photographer: Eva Marie Uzcategui/Bloomberg
This article is for subscribers only.
Investors should lock in gains on US defensive stocks as their recent outperformance has left valuations looking pricey, according to Morgan Stanley strategists.
The team led by Michael Wilson turned neutral on so-called defensives relative to economy-linked cyclical sectors, saying they are awaiting “more clarity” on jobs data, which they see as a key driver for stocks into the year end.