Morgan Stanley Has Had Enough: “When You Think Of Something, Do The Opposite”

Monday, March 7, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
03/07/2016

Three weeks ago Morgan Stanley did something unthinkable: it admitted the truth that in this centrally-planned “bizarro world” its “Advice Has Been Horrendous” explaining this revelation as follows: “for those who follow our portfolio, we did quite well over the five years from 2011-2015. But, our portfolio just had its worst month in 61 months in January, and things have not improved in February. The market is down more than we thought it would be. Our biggest sector bet has been financials (particularly credit cards). As an investor recently said to us at a conference, “I am doing a lot of things, just nothing with confidence”. Doing the opposite of what we recommended would have been better. Bizarro World. Or at least hopefully not the real world.”

Condolences: when central banks managed to push markets higher, nobody complained, but now that things have… changed, everyone is suddenly utterly confused.

Today Morgan Stanley’s equity strategist Adam Parker follows up with “When You Think of Something, Do the Opposite.” This is what he says:

Risk management isn’t easy. Some investors we talk to do it extremely quantitatively, some investors do it in their head. Neither seems to be that successful lately. The new consensus market outlook is that we will chop around a lot, but end up nowhere over the next year. That’s assuredly an upgrade from where sentiment was on February 11, the market lows. It’s amazing how higher prices themselves so dramatically alter the consensus outlook.

The Rest…HERE

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