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Investors have been making much of the huge the stock market rally since the beginning of the month, driven by US economic data that has trended better than expected. But Morgan Stanley’s Greg Peters warns that this is just a bear market bounce:
Don’t believe the hype; we remain quite cautious. Bear markets always have bear-market rallies. For example, the sharp Nasdaq correction in 2000-02 saw eleven 10%-plus rallies – including three over 30%. This signals that while it may be right to remain strategically bearish – as we are – this tactical up-move could have further to run.
However, if you want to get into stocks now, Morgan Stanley recently released its ‘Nifty 50’ Stocks that could crush the market for years to come.