fxstreet.com 23 Feb, 2021 12:45 am

Higher interest rates and peaking earnings revisions to be difficult to handle – Morgan Stanley

Higher interest rates and peaking earnings revisions to be difficult to handle – Morgan Stanley
US equities markets have continued to perform well, fueled by upbeat earnings and vaccination news. However, that’s often when surprises arise. A corr

FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.First, is the risk associated with interest rates rising sharply as bond markets simply catch up to what other asset prices are already reflecting.” “With this macro backdrop, we continue to favor areas in the market that are reasonably priced or can benefit from rising rates and inflation.

Sales have been just 3% higher on average, suggesting our operating leverage theme is really playing out.Second is the risk that some of the positive operating leverage that we've been witnessing in company earnings reports starts to go in reverse.

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