Thursday, November 11, 2010

Morgan Stanley: Equities Are Now 'Crazy Cheap'

Global stocks are in the middle of a multi-year bull market that began in March 2009 and will last for at least two more years, Morgan Stanley Smith Barney's investment strategists said on Wednesday.

"One of the great investment decisions someone could make today is to be invested in the equity markets, especially in the emerging markets," said Charles Reinhard, Morgan Stanley Smith Barney's global investment strategist at a press briefing on the firm's 2011 outlook.

The S&P 500 Index of large U.S. stocks has gained 79 percent since bottoming in March 2009, but Reinhard said there are still plenty of opportunities for investors. Company profits have grown by about 30 percent this year, and stock prices are "crazy cheap" relative to bonds and cash, he said.

Investors in the wake of the 2008 financial crisis have poured into the safety of bonds and cash, driving yields to paper thin levels. (more)

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