From Morningstar: 2025-05-15 04:42:00

Stocks have rebounded since April 2, but Morgan Stanley’s Lisa Shalett warns of lingering tariff concerns. Another year of high stock market returns is unlikely. Shalett suggests active stock picking or equal-weighted products for unique gains.

Shalett remains cautious despite market optimism from trade deals and earnings. Tariffs could lead to reduced consumption, economic growth, and higher inflation. A growing federal deficit may raise interest rates and impact stock valuations. Shalett predicts modest single-digit stock gains, not double-digits.

Market watchers debate whether short-term tariff pain will be offset by fiscal priorities. Shalett sees potential for high interest rates and inflation due to tariffs. Tech companies with global sales could face boycotts affecting the US market. She advises active stock picking for companies that benefit from tariff policies.

In the current market, Shalett recommends active stock picking or equal-weighted investments over traditional indexes. Companies with stable revenue, domestic operations, and low debt are preferred. Defense companies may benefit from increased spending, while pharmaceuticals could face higher taxes due to tariffs. Shalett emphasizes the importance of analyzing individual companies for potential policy impacts. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. Investors are concerned about rising inflation and its impact on the economy.

2. A new study reveals that 70% of Americans are currently living paycheck to paycheck. This highlights the financial struggles many people are facing in the wake of the pandemic.

3. The FDA has approved a new drug for the treatment of Alzheimer’s disease. The drug, Aduhelm, has shown promising results in clinical trials and is expected to provide hope for patients and their families.



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