Morgan Stanley: rate-cut fails to spur corporate earnings

Morgan Stanley global chief strategist said that despite the six times of rate cut by the Fed, the Nasdaq and Stand & Poorˇ¦s 500 index would dip through the two-and-a-half-year level in April when Nasdaq dropped to the lowest 1638 pts and SP 500 index plummeted to 1103 pts. He said that the rate cut failed to give a shot in the arm to the corporate earnings and the economy would get in recession unavoidably, further warning that the earnings outlook for next year remained obscure and suggesting that investors buy stocks in consumption, utilities, insurances and energy sectors.

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