“The American Michael Wilson, the US company will support the profits of American companies, will help the American stock market to outperform the rest of the world’s markets,” said Michael Wilson, CEO of Morgan Stanley.
Although many other strategists in “Wall Street” announced the end of the American exceptional era, Wilson came with a violation view, as it is believed that the United States is the best relative bet, according to the Bloomberg News Agency.
Wilson pointed out the growth of less volatile profits, and that American companies are considered higher quality, as other reasons that support his point of view.
“We are still late in the economic cycle, as it is expected that high -quality and large market value will continue to be relatively others,” Wilson said in a note today, Monday.
Dollar weakness is the best competitiveness of American goods
According to the Wilson Strategy Team, the decrease in the value of the dollar is a positive factor for American companies, as it improves the competitiveness of its exports and increases its profits when transferring foreign revenues to the dollar. This effect enhances the attractiveness of American stocks compared to international markets, especially in light of relative stability in US companies’ profits.
Despite the current challenges, Morgan Stanley believes that there are opportunities for investors in American stocks, with twice the dollar, but it warns of possible risks such as the deterioration of the labor market or economic stagnation, which requires caution and monitoring the upcoming economic data.
The dollar settles before a series of data
On Monday, the dollar witnessed stability at a time when investors are awaiting the developments of American commercial policy and preparing for a week full of economic data that may give preliminary indicators on the impact of the trade war launched by US President Donald Trump.
The dollar settled in early transactions at 143.49 yen and 1.1375 for the euro, while the trend continues towards the largest monthly decline in nearly two and a half years after Trump’s policies have decreased confidence in US origins.
The dollar decreased by more than 4% against the euro and the yen during April, despite its recovery last weekend thanks to alleviating statements in the dispute between Washington and Beijing.
The United States will issue data this week about the labor market, the GDP for the first quarter and the Personal Consumption Expenses Index. Initial inflation data and GDP in Europe are also scheduled to be released.
