Why Morgan Stanley's Top Equity Strategist Is So Bearish

Adam Parker Morgan Stanley StrategistAdam Parker

Photo: Bloomberg

This morning, Morgan Stanley’s top equity strategist Adam Parker was on CNBC explaining his bearish outlook on stocks.Sam Ro summarized Adam Parker’s beliefsin a post at the end of March.

  1. “Lower forecast earnings growth and more concentrated earnings among S&P stocks.”
  2. “Non-normalized interest rates and a vastly expanded Fed balance sheet.”
  3. “Much higher commodity prices, particularly oil.”
  4. “Index rebalancing has contributed to performance: 125 new firms have $82 billion more market cap than the outgoing companies had in 2006; also, 25% of income growth is from Apple.”

Parker’s conclusion:

Don’t pay a higher multiple for today’s corporate earnings!

For more on Parker’s negative outlook see here >


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