Gains for quality U.S. stocks are seen going beyond tech
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:15 p.m. (1:15 p.m.) on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube.
Gains among higher-quality stocks are poised to broaden out to companies displaying “earnings stability rather than growth,” according to Mike Wilson, chief U.S. equity strategist at Morgan Stanley. Wilson drew his conclusion in a report Monday that compared the MSCI USA Quality and Russell 2000 indexes. The ratio between them climbed 24% from a March 12 low through yesterday, according to data compiled by Bloomberg. The rally followed a 35% retreat from a record in March 2020. Health-care, consumer-staples, real-estate and phone stocks are poised to join technology shares as leaders, Wilson wrote.