Morgan Stanley stated that there will be high volatility in the markets.
Morgan Stanley stated that the 10-year inflation-adjusted US returns, which is an important indicator for the interest in risky assets worldwide, will increase by at least 50 basis points with the Fed’s rate hikes.
In such a scenario, the sales wave seen at the beginning of the new year is expected to continue in the growth stocks, which are expected to achieve sales and profit growth above the market average and whose prices are already very high.
The year 2022 started with a serious stock rotation, with investors moving from technology-heavy growth stocks to cheap value stocks.
In the first week of the year, the Nasdaq 100 index decreased by 4.5 percent, and the 10-year real yields rose to minus 0.77 percent, the highest level since April.
