Morgan Stanley Says Don’t Buy the Rally as Fed Looms
- Rally a reflection of seasonal effect, short covering: Wilson
- Markets forgetting cardinal rule of ‘Don’t Fight the Fed’: MS
WATCH: On Jan. 23, Morgan Stanley's Wilson Said October Lows Will Be Retested
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Investors flocking to the equity rally will be disappointed as they’re in direct defiance of the Federal Reserve, according to Morgan Stanley strategists.
“Better price action in stocks has started to convince many investors they are missing something — compelling them to participate more actively,” a team led by Michael Wilson wrote in a note. “We think the recent price action is more a reflection of the seasonal January effect and short covering after a tough end to December and a brutal year.”