{"id":2545,"date":"2020-04-06T02:00:37","date_gmt":"2020-04-06T02:00:37","guid":{"rendered":"https:\/\/www.maxlee.info\/blog\/?p=2545"},"modified":"2020-04-07T07:44:32","modified_gmt":"2020-04-07T07:44:32","slug":"the-worst-is-behind-us-the-most-attractive-risk-reward-in-years","status":"publish","type":"post","link":"https:\/\/www.maxlee.info\/blog\/news\/the-worst-is-behind-us-the-most-attractive-risk-reward-in-years\/","title":{"rendered":"\u2018The worst is behind us\u2019 \u2014 the most attractive risk-reward in years means it is time to buy stocks, Morgan Stanley says"},"content":{"rendered":"

It\u2019s a Monday but there is optimism in the air. Tentative signs that the coronavirus spread may be slowing, despite the U.S. being set for its worst week so far, have encouraged investors, sending stocks surging higher – the Dow closed 1,627 points – 7.7% – higher. New York reported a drop in new infections and deaths on Sunday and President Donald Trump said there was \u201clight at the end of the tunnel.\u201d<\/p>\n

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A fighting bull at the San Ferm\u00edn running-of-the-bulls in Pamplona, Spain.<\/figcaption><\/figure>\n

Published: April 6, 2020 at 5:24 p.m. ET, By Callum Keown<\/p>\n

The worst is very much ahead when it comes to the virus but, in our call of the day, Morgan Stanley\u2019s chief U.S. equity strategist Mike Wilson said that for stocks and investors the worst was behind us.<\/p>\n

He said bear markets end with recessions and that stocks had reached a good entry point for investors.<\/p>\n

\u201cWith the forced liquidation of assets in the past month largely behind us, unprecedented and unbridled monetary and fiscal intervention led by the U.S. and the most attractive valuation we have seen since 2011, we stick to our recent view that the worst is behind us for this cyclical bear market that began two years ago, not last month,\u201d Wilson said in a note.<\/p>\n

He added that current stock market levels would prove to be good entry points on a 6-12-month horizon.<\/p>\n

\u201cBear markets end with recessions, they don\u2019t begin with them, making the risk\/reward more attractive today than it\u2019s been in years; with the twist that the next leg of the bull market could look much different than the last\u2026\u201d<\/p>\n

The tweet<\/strong><\/p>\n

Wall Street billionaire Bill Ackman struck a more positive tone in a series of tweets on Sunday.<\/p>\n

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I am beginning to get optimistic. Cases appear to be peaking in NY. Almost the entire country is in shutdown. Hydroxychloriquine and antibiotics appear to help. There is increasing evidence that the asymptomatic infection rate could be as much as 50X higher than expected.<\/p>\n

— Bill Ackman (@BillAckman) April 5, 2020<\/a><\/p><\/blockquote>\n