ToplineAs stocks add to record highs, analysts at Morgan Stanley analysts are warning clients of an impending correction this year amid elevated market risk, particularly in the technology sector, which is sinking Monday while the broader market climbs. Based on comparable years in past market cycles, Morgan Stanley predicts that this year will bring only “flattish” stock returns—with a 10% to 20% correction also along the way. “Whatever correction the market experiences this year, we are likely to make higher highs next year. In big tech, Wilson says Morgan Stanley is most bullish about Alphabet, which has soared a staggering 36% this year. Tangent“Record highs in U.S. stocks are not a barrier to further stock gains,” Andrea Bevis, a senior vice president at UBS Private Wealth Management, said Monday morning.

Source: Forbes May 10, 2021 14:33 UTC