Morgan Stanley speaks of paradigm shift and endorses warning on economic uncertainty

Morgan Stanley speaks of paradigm shift and endorses warning on economic uncertainty

Stock selection of winning companies becomes even more relevant in the face of new scenario, says Ted Picks, vice president of the American bank

The pessimistic chorus about the future of the global economy has gained another strong representative: Ted Picksvice president of Morgan Stanleyone of the leading US investment banks.

The reasons, for Picks, are clear. “It is an extraordinary moment. We have our first pandemic in 100 years, the first European invasion in 75 years and the first global inflation in 40 years,” Ted Picks said at an event in New York last week, according to CNBC. The combination of factors, he said, “signals a paradigm shift” and the end of an era of monetary stimulus.

The new era, according to Picks, will be one of interest rates above inflation and additional risks to the stock market. “We have long had to consider what a world is like with real interest rates and real cost of capital that will distinguish winning companies from losing companies, winning stocks from losing stocks”

But the paradigm shift won’t happen overnight, Picks said, and should take between 12 and 24 months.

The statements by the vice president of Morgan Stanley go against the utmost caution of some of the main names on Wall Street.

JP Morgan president Jamie Dimon even warned of the arrival of a “hurricane” in the global economy in the last week. Earlier this month former Goldman Sachs chairman Lloyd Blankfein spoke of a “very, very high” risk of recession in the United States.

Source: Exam

Related post

Financial second conjures up look after entrepreneur, says franchising govt

Financial second conjures up look after entrepreneur, says franchising…

For José Carlos Semenzato, founder of SMZTO, the political scenario will have little relevance to business success or failure The high…
U+Pageant debates the financial position of ladies over 50 years outdated

U+Pageant debates the financial position of ladies over 50…

Brazil has more than 30 million women 50+; event proposes connections and debates on challenges and opportunities The constant changes in…
G20 expects financial scenario to stay troublesome in 2022 and probably 2023

G20 expects financial scenario to stay troublesome in 2022…

“We cannot ignore the growing risk of economic recession,” said Sri Mulyani O G20 expects the economic situation around the globe…

Leave a Reply

Your email address will not be published. Required fields are marked *