Morgan Stanley tells investors to play defense as cycle indicator flashes ‘downturn’

MarketWatch/Sunny Oh

“Investors should brace for market turmoil over the next 12 months. That’s the warning from Morgan Stanley’s cross-assets team, who says their cyclical indicator has flipped to ‘downturn’ from ‘expansion,’ a shift that has historically led to weaker returns for stocks and other risky assets, along with an elevated chance of a recession. In a note dated on Sunday, the bank advised market participants to go on the defensive, eschewing U.S. stocks for the safety of Treasurys and cash.”

USAGOLD note:  There’s one other alternative that Morgan Stanley may have skipped in its recommendations.  It is yellow, shiny and it comes in the form of coins and bullion. Best of all, when you own it in physical form, it is not simultaneously someone else’s liability.

Repost from 6-3-2019

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