Why Morgan Stanley Downgraded Small-Cap US Stocks
Previously, we discussed Morgan Stanley’s (MS) optimistic views on major defensive sectors. On June 26, in an interview with CNBC, LPL Financial senior market strategist Ryan Detrick said, “Small-cap leadership is a good thing,” adding that “it could be carving the way potentially for this bull market to continue as the S&P’s second half of the year also does well.” However, Morgan Stanley’s recent downgrade of small-cap stocks signals there could be some danger ahead for the bull market.