Fed is a Greater Threat for Stocks than Omicron Feels Morgan Stanley

    According to Bloomberg News, there are perhaps more important things for stock investors to worry about than the emerging omicron, which is a variant of coronavirus, says strategists at Morgan Stanley. 

    The strategist team led by Michael Wilson states that while omicron is not being regarded as a major risk factor that will affect the equities, the risks seem to be arising elsewhere especially after Jerome Powell, the chairman of the Federal Reserve indicated that there is a possibility of faster tapering of the asset purchases. 

    Due to faster tapering of asset purchases, there is tightening of the markets which will lead to valuations being lower as always when it does during the stages of recovery. The same was written in a note by the strategists. 

    Bloomberg News also reports that Brian Nick associated with Nuveen, which is the TIAA’s investment arm, with $1.3 trillion in the assets under the management said Monday that “the major risk to our outlook remains a sudden tightening of financial conditions if central banks are forced to respond to inflation driven by an overly tight labor market”. As compared to that most of the market as well as economic risks associated with the new variant “are behind” as per Nuveen’s outlook for the year 2022. 

    Strategists at JPMorgan Chase & Co have also adhered to a similar notion by singling out the hawkish change by central banks as riskier and not Covid-19 new variant as the prime risk for the outlook of the stocks. But while JPMorgan repeated Monday about the base-case scenario related to equities, Morgan Stanley has seen S&P 500 index trending at a lower with declining valuations. 

    Technology stocks that are relatively sensitive to monetary stringency were seen underperforming Friday and NASDAQ 100 futures contract Monday indicated a drop while the peers at S&P 500 index were seen to be in green. 


    RELATED ARTICLES

    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...
    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    FDs are one of the most preferred investment products for senior citizens as they offer...
    When was Studio Ghibli founded

    When Was Studio Ghibli Founded: Japan’s Iconic Animation Legacy

    Studio Ghibli is a popular Japanese animation studio, known by many for its stunning movies,...
    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    best video editing app

    Best Video Editing App: How to Edit Like a Pro

    In the continually shifting world of digital media, video editing has become essential for makers...
    srd status check

    SRD Status Check: Unlocking Your Grant Journey, Step-by-Step

    SRD status check – those three words can carry a lot of weight, can't they?...
    pre travel checklist

    Pre Travel Checklist: 10 Things You Need to Do for a Smooth Stress-Free Trip

    Pre travel checklist: the secret to truly enjoying your adventures, trust me. We've all been...
    well health organic ayurveda

    Well Health Organic Ayurveda: Ayurvedic Health & Beauty

    Ayurveda, the historical Indian system of medicine, has been practiced for over 5,000 years and...
    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...