Morgan Stanley: The weakness of the dollar supports US shares

The weakness of the dollar contributes to the support of the profits of companies, which will help the US stock market to perform better than the rest of the global markets, according to analyst Michael Wilson in Morgan Stanley. In a time when many strategies in Wall Street announce the end of the American exceptional era, Wilson violates his vision that the country will be the relatively best option based on the growth of less volatile profits, and the fact that US businesses are the highest quality compared to others. He wrote in a memorandum on Monday: “We are still in a late stage of the economic cycle, and the relative excellence of quality stocks and shares of major market value must continue.” Wilson expects the S&B 500 index to remain between 5000 and 5500 points within a series, adding that the achievement of any larger increase will require an agreement with China over customs duties, and a remarkable recovery in profit estimates, as well as the federal adoption of an easy monetary policy. The stagnation of my permanent shares outside America, on the other hand, is Misslav Matiga of JP Morgan, among others, prefers international shares over its US counterpart. He said in his modern memo that the risk ratio to the return looks better in favor of shares outside the United States, especially if President Donald Trump has withdrawn the customs duties policy, but that is still the possibility of a high recession. Medigka is not unique in its cautious view of US stocks, as Alan Bokopza, the head of assets at the ‘Societe General’, warned that investors will continue to reduce their exposure to US equities and the dollar as Trump continues to follow its trading policy. Last week, the Strategy of Bank of America advised to sell Americans and dollars during the rise, and explain it by not the factors needed to achieve sustainable profits.