As investors, it’s important to always be on the lookout for quality and defensive stocks that can weather market volatility and economic uncertainties. One such firm that has been doubling down on its preference for defensive quality stocks is Morgan Stanley.
Since June, Morgan Stanley has been advocating for a defensive strategy, even as major U.S. indexes continue to hit new highs. According to Michael Wilson, the firm’s chief U.S. equity strategist, growth is now the primary concern for equity investors, rather than inflation and rates. Wilson believes that an economic soft landing is still the base case scenario and recommends skewing more defensively in one’s portfolio as rates fall further.
Morgan Stanley has highlighted a stock screen of quality and defensive names, with three new additions to their “Fresh Money Buy List”: Public Service Enterprise Group, AbbVie, and Northrop Grumman. AbbVie, a pharmaceutical company diversifying its drug pipeline, is expected to outperform after the Federal Reserve’s interest rate cut. Northrop Grumman, an aerospace and defense company, is viewed as undervalued with attractive free cash flow growth.
One standout tech name in Morgan Stanley’s screener is Meta Platforms, formerly known as Facebook. Analyst Brian Nowak believes that Meta’s innovation and growth drivers position it well in the consumer internet space. Walmart and Lowe’s are also among Morgan Stanley’s defensive and quality favorites in the consumer discretionary sector.
At Extreme Investor Network, we understand the importance of a defensive investment strategy in today’s uncertain market environment. By following the lead of firms like Morgan Stanley and focusing on quality and defensive stocks, investors can protect themselves during times of market volatility. Stay informed with the latest investment insights and updates on our website to make informed decisions in your investment journey.