Morgan Stanley recommends selling the arrears and purchasing shares, Take-profit.org reports.
The Great Rotation – the re-orientation from bonds to shares – starts again, however, the shares, most profitable for purchase, are certainly not American.
“It’s time to demonstrate most possible trust in US politics and administration of a new president”, Bank’s Strategist Andrew Sheets noted.
The expectations for growth of inflation and budgetary incentives led Dow to record maximums.
On the first week after Trump’s victory, the investors injected USD 28 bln in shares, 2-year maximum, while the bonds faced the largest capital outflow for 3.5 years, amounting to USD 18 bln, Bank of America Merrill Lynch continues.
However, according to Morgan Stanley, the market appears too optimistic. In Q1 of the next year, it is expected that revenues and dollar will grow, while financial conditions will be tightened. The higher markets trust new administration, the more chances that they will not be disappointed.
Morgan Stanley encourages paying attention to Japanese and European shares, which offer good profit in spite of political risks
