Uncertainty is the word of the day, in reference to the near-term economic future. Sentiment will hinge on the inflation numbers due out next week. March’s figure rose to 3.5%, and April’s job numbers showed a marked slowing in the labor market; that combination has stoked fears of stagflation.
But – corporate earnings from Q1 are beating expectations, and the stock market has taken a turn for the better with the S&P 500 closing just below 5,200 yesterday. Economic strategists are still optimistic that the Federal Reserve will move to cut interest rates later this year.
So, there are cases to be made for both the bears and the bulls right now, making the environment one tailored for astute stock picking.
With this in mind, the Morgan Stanley analysts are pounding the table on two stocks in particular, arguing they are well-positioned to deliver handsome returns in the year ahead…
