Morgan Stanley: GDP numbers are positive for equities but not Biotech stocks

Adam Parker the Chief Equity Strategist at Morgan Stanley says the GDP numbers are positive for equities. "To me the setup is good. Why sell U.S equities when bottom-up numbers are too low, the economy is improving and sentiment's not that ebullient? Sounds like a winner to me." You can have kind of a slow recovery, a slow retrenchment from the Fed, slow reflation and that could be a pretty positive backdrop for equities." However, Parker warns that not all sectors will be on an uptrend – pointing out Biotech and “roll-ups” as two areas that might be at risk. "I'm a little bit worried that you'll see some of the biotechs and roll-up names get sold as the rates rise. Biotech in particular has a lot more sensitivity to interest rates than maybe everyone realizes." (Source: Morgan Stanley, CNBC)


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