00:00 Speaker A
Let’s flip now again to the equities market right here. Morgan Stanley strategist Mike Wilson says the tides could also be turning for US shares. Citing a weaker greenback, the strategist says the earnings outlook for equities will enhance and that the large rotation out of shares this 12 months may flip round. There you are having a look at a partial quote on the display, relative efficiency versus worldwide developed equities can swing again in favor of the US in Mike Wilson’s view.
00:26 Speaker B
Yeah, it is attention-grabbing. That is actually all primarily based off of a name for a weaker greenback which we might or is probably not getting. It does appear to be the Trump administration is in favor of that transfer to date. Uh having mentioned that, Mike Wilson once more saying {that a} weaker greenback would provide a tailwind particularly for US earnings and US earnings revisions transferring ahead. It might be a once more, a tailwind for driving extra money again to the US. We have seen this type of divulging of the US exceptionalism narrative and if Wilson’s name holds true, this concept {that a} decrease greenback will result in a return to US equities and a flight again to these massive cap shares particularly, off the again of what now we have seen is a little bit bit extra euphoria round worldwide equities to date this 12 months.
01:23 Speaker A
Yeah, and simply to offer individuals a barometer on the market for Q1, and that is in line with some truth set knowledge, for Q1 2025, the estimated year-over-year earnings progress charge for the S&P 500 is 7.1%. If that’s the precise progress charge for the quarter, it is going to mark the seventh straight quarter of year-over-year earnings progress reported by the index. In order that simply type of a measuring submit to remember as we go into this subsequent earnings season.
02:05 Speaker B
Completely. Such an amazing level, Brad. And I do assume, to me, what additionally actually stands out is that he is speaking in regards to the MAG 7 tech shares doubtlessly already bottoming and this isn’t the primary name that we have seen like this over the course of the weekend. Keith Lerner over at Truist, buddy of the present, additionally speaking about the identical factor that he does see this return to US exceptionalism. It is fascinating to me that we had 16 years of US shares on high and what do now we have? Eight weeks possibly max of a query mark to that narrative. And now we have already acquired analysts working again to say, “Hey, return to the US the place you belong.”
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