On September 24th, Andrew Slimmon, senior portfolio manager for U.S. equities at Morgan Stanley Investment Management, said in a phone interview that the U.S. stock market's bull market is likely to see a pause rather than a major correction for the rest of the year . "You have to hold on" to the technology, financial, and industrial sectors. While these cyclical stocks are somewhat overbought, they are likely to continue to outperform this year, in part because the Federal Reserve just resumed its interest rate cuts last week and there are no signs of a recession.
In his view, the Fed's September 17th rate cut was a "non-recessionary rate cut." Slimmon said that historically, when the Fed resumes rate cuts after a pause and there are no signs of a recession, U.S. stocks typically rise. (Jinshi)
