WYNN - Morgan Stanley CIO: keep away from consumer discretionary

Morgan Stanley chief equity strategist Mike Wilson was blunt in his bearish assessment of consumer discretionary stocks in an interview with CNBC on Tuesday. He noted that while inflation is often a positive for markets given its impact on GDP and revenue growth, the current environment is less encouraging given its impact on costs. Next, he anticipates significant “demand destruction” and margin pressure that will lead to more disappointing earnings results and “the next leg down for the market.”He cited consumer discretionary stocks as the most obvious sector to be impacted in coming quarters, with industrial and technology spaces also due for headwinds. The commentary offered to CNBC dovetails with recent notes from the equity strategist citing the war in Ukraine and its impact on fuel and food costs as an added tax on consumers already dealing with high inflation. He advised taking defensive positions in healthcare, REITs, and utilities. Wilson has

For further details see:

Morgan Stanley CIO: keep away from consumer discretionary