Looking ahead at stock performance two years ahead implies that investors choose between two risk-reward strategies based on the current state of the market. For some time now U.S. equity markets have behaved as if stocks are reasonably valued. In this so-called Goldilocks market, it is common to expect that volatility could return bringing big swings in prices and volume to the market.
Analysts at Morgan Stanley do not believe that is how the market shapes up for the next couple of years. On Friday, the bank’s analysts released a research note coming down solidly on the side of sustainability and quality rather than volatility as the way to play the market over the next two years. The analysts also came up with a list of the 30 stocks “whose business models and market positions would be increasingly differentiated into 2021.” These 30 stocks, the analysts say, are the ones “most likely to strengthen their sustainable competitive advantage.”
In the list that follows, we present Morgan Stanley’s list along with the firm’s current rating, current share price as of Thursday’s close, and Morgan Stanley’s price target.
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