Tag Archives: Morgan Stanley

Is the U.S. Market Due for a Breather?

Why two critical factors could serve as catalysts for a near-term pullback in stock indices, and how investors can play it.
By Lisa Shalett – Major U.S. stock indices charged higher in August, regularly setting new highs, but more out of “climbing the wall of worry”—as in, the market’s tendency to move up even against a host of negative factors—than based on any economic or profit fundamentals.

This means that stock-price resilience likely reflects an overpriced market. Indeed, many investors seemed to have ignored numerous risk factors, including the resurgence of COVID-19 hospitalizations in the U.S.falling consumer confidence, higher interest rates and significant shifts in geopolitics in China and the Middle East.

Why has the market been so complacent? We believe that today’s market dynamics are increasingly responsive to nuanced communications from the Federal Reserve, which seems to have successfully convinced investors that central bankers can thread the policy needle without mistakes. At its recent annual Jackson Hole Economic Symposium, for instance, the Fed reiterated its view that inflation will likely prove transitory, meaning it’s in no rush to raise interest rates. more>

Veteran broker departures shift $133 billion client assets in 2012

English: Crowd gathering on Wall Street after ...

English: Crowd gathering on Wall Street after the stock market crash of October 1929. (Photo credit: Wikipedia)

By Ashley Lau – Brokerages saw top advisers depart in droves last year and shift $132.5 billion in client assets with them, a Reuters tally shows, creating headaches for some Wall Street banks.

Signing bonuses for top advisers are now around 350 percent of the broker’s annual revenue, with 180 to 200 percent offered upfront, said Tom Lewis, a New Jersey-based lawyer for Stark & Stark. An adviser who generates about $1 million in annual revenue might receive as much as $2 million on day one from a rival firm. more> http://tinyurl.com/bhunzyf

Hate Paying Taxes? 12 Quotes You’ll Love

By Robert W. Wood – More than a few public figures, great minds, and clever rascals have made their views about taxes pretty clear.

  • “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill
  • “Collecting more taxes than is absolutely necessary is legalized robbery.” – Calvin Coolidge
  • “You must pay taxes. But there’s no law that says you gotta leave a tip.” – Morgan Stanley advertisement

more> http://tinyurl.com/cfge5vw

Banks may shrink for good as layoffs near 160,000

By Sarah White – A Reuters analysis of job cuts announced by 29 major banks showed the layoffs were much bigger in Europe than in Asia or the United States. That is a particular blow to Britain where the finance industry makes up roughly 10 percent of the economy.

The tally of nearly 160,000 job cut plans, meanwhile, is likely to be a conservative estimate as smaller banks and brokers are also cutting staff or shutting up shop, and bigger banks have not always disclosed target numbers of layoffs. more> http://tinyurl.com/awnvyok