Shares across the board rallied in July, with Nasdaq having recovered from previous falls. And Wall Street is debating whether the market has bottomed. Growth stocks like technology have generally tumbled this year due to currency tightening, recessions and other risks. And Morgan Stanley in an August 3 report warned that although the Nasdaq is up 16% since June 16, investors shouldn’t get ahead of themselves. “This is not the bottom of the market, things are not going to go up consistently from here on as we will be buying fewer tech products for a while, so people have fewer units to produce.” output because of post-COVID = pre-COVID demand,” the bank’s analysts wrote. “Fact check – unlike ‘big tech’, consumer-related companies are discretionary to give more cautious guidance,” they added. Morgan Stanley lists a few examples: Sony is frustrated with guidance, Microsoft and Apple are slowing hiring. Additionally, Microsoft said SMEs are spending less on IT and warned the PC market deteriorated in June, the investment bank noted. Morgan Stanley says the “foreigner” is Apple. According to Morgan Stanley, consumption in China also decreased due to the impact of the Covid lockdown. It says that slowdown will affect e-commerce and the consumer discretionary sectors. Why stocks could go up Banks say stocks are rallying now for a couple of reasons – inflation expectations have eased as commodity prices fall and interest rate hikes are perceived as easing pressure on technology stocks. Earnings are “fade, but not as bad as feared,” it added. US stocks mostly continued their rally this week. The Nasdaq is up 2.7% so far, while the S&P 500 hit its highest since June on Wednesday, up 0.5% so far for the week. But Morgan Stanley seems mindful of what lies ahead. Read more The asset manager predicts the next bull market – and reveals how to position it Here’s how to invest for the yield to beat a bad year for stocks and bonds – according to Experts say the market has bottomed yet? Here’s what Wall Street had to say after the US stock market rallied in July “Earnings aren’t going to soar – the problem is not with the current earnings season (that’s the reverse) but where we are. going in the wrong direction of the profit cycle and that is the next earnings season and the season after that where we will see the slump, the highest profit pressure and the mean rate reversal “, the analysts said. Technology Stock Options Morgan Stanley says Samsung is one of the tech stocks that can weather the “storm”. It said the company has a “huge resource” that the company has yet to monetize and has seen its value drop to its “most significant” level since late 2018. Morgan Stanley has set the target. the price for the stock was 70,000 Korean won ($53), an increase of about 14%. The bank said it prefers companies that have the ability to continuously grow better than their peers, naming chipmakers TSMC and Alchip as two such examples. Morgan Stanley has a price target for TSMC of NT$780, up about 55%. It also has a price target for Alchip of NT$1,420, up more than 120%. Morgan Stanley said it will sell parts of technology such as cloud semiconductors and Japanese semiconductor capital equipment.
