Via Morgan Stanley:
Given that most stocks have been in a bear market for two years or longer, we recommend investors start buying stocks now because we cannot be sure if the next pull back will lead to lowers lows or not given we already experienced forced liquidation. Bottom line, we believe 2400-2600 on the S&P 500 will prove to be very good entry points for those with a time horizon of 6-12 months.
…Don’t Fight the Fed. The Fed surprised again last week, this time offering up to $2.3T in loan support while moving further down the quality curve with their secondary market purchases pushing into high yield. This move is in-line with our prior view that investors should have no doubt about the Fed’s resolve to do whatever it takes to make sure this recession does not turn into a depression.
