Morgan Stanley expects market volatility to be 'the new normal'
Although reports of strong quarterly earnings are giving businesses much to be happy about, experts say investors should be prepared to make some pivots as we see an increase in market volatility swings.
In a recent blog post, Morgan Stanley offers advice on positioning to gain the most benefits during the current upswing, but also be prepared when the market once again faces uncertainty.
“A strong economy, tax reform and deregulation have been broad tailwinds for many of our businesses,” Morgan Stanley’s vice chairman of global capital markets Melissa James said in the article. “Now, as we conduct our own strategic planning, we’re focused on the future, and making sure we’re nimble enough to pivot, because we know that those tailwinds can turn into headwinds unexpectedly."
According to the article, we should expect the ups and downs in market volatility to "become the new normal."
"One of the things we can probably all agree on is that increased volatility is going to be with us for a while," James told the conference audience. "So we need to be prepared for any possibility," she said.