Further US stock market gains need earnings boost - Morgan Stanley

Analysts answers the question: What to buy when greed and fear take over?

Fear and greed are on opposite ends of the market sentiment spectrum, but the question remains the same regardless, what should investors buy when fear and greed take center stage?

Analysts at Evercore ISI explained their view on the topic in a note to clients this week, saying that stocks are "historically uncorrelated," and indices are being driven by a small number of stocks.

The firm said, "Active managers are torn between embracing greed (chasing leaders) and... More

These sectors offer the best stock-picking opportunities - Goldman Sachs

In a note to clients this week, Goldman Sachs analysts highlighted sectors with the best stock-picking opportunities, noting that stock correlations sit below historical averages within every sector.

The investment bank said listed various conversations they are currently having with investors, including the "fertile stock-picking environment," which they feel is generally more conducive to alpha generation, and the fact they expect return dispersion to remain near the long-term average in 2024. The firm also said that consistent with low correlations, S&P 500 stock returns have... More

RBC Capital sees more broad-based improvement in US GDP expectations

RBC Capital's head of U.S. equity strategy, Lori Calvasina, highlighted the key aspects they have noticed from their high-frequency indicators in a note Monday.

Firstly, the firm said one of its key sentiment indicators has started to retreat after hitting extreme levels, which has coincided with a stealth rotation in leadership.

RBC explained it had seen a sharp move lower on CFTC's US equity futures positioning gauge. "This was driven by a drop in positioning in Nasdaq... More

Bank of America says CTAs could start trimming their longs in equities

Analysts at Bank of America said Monday they believe the decline in equity price trend could cause CTAs trim their long positions.

The firm explained that since the end of October last year, the S&P 500, NASDAQ-100, EURO STOXX 50, and Nikkei 225 are each up more than 20%.... More