REUTERS
- Morgan Stanley's equity strategists have been sounding the alarm on the bull market, saying an extended period of volatility and weaker returns may be underway.
- If that's the case, it increases the importance of stock picking to be invested in parts of the market that stay afloat.
- Equity strategists across the firm rated companies they believe will deliver the best returns over the next three years.
If "buy and hold" is your strategy, Morgan Stanley has a few stocks you'd want to consider.
Equity analysts across industries recently published a list of quality stocks that are good to hold for a three-year period - through 2021, in this case.
Morgan Stanley's equity strategists have been sounding the alarm on the bull market for a number of months now, warning that an extended bear market may already be underway. If that's truly the case, stock picking will be more important to minimize the damage that's caused by the worst performing parts of the market.
The strategists rated stocks based on their sustainability of competitive advantage, business model, pricing power, cost efficiency, and growth. They didn't simply identify the most undervalued stocks. They also factored in Environmental, Social, and Governance (ESG) principles to see how companies are running themselves today to be sustainable in the future.
The list below highlights the top 17 of the 30 stocks they identified, with comments from the analysts who cover the stocks.