In the last few days, the US shareholders’ markets have experienced a new phase of volatility, with a significant Sell-Off (sale) that has affected several titles. The catalyst? Yet another Rating cutting on the US sovereign debt. He certainly did not benefit the new announcement on 50% duties who made Donald Trump.
Moody’sone of the main rating agencies in the world, has lowered the judgment on the ability of the United States to repay its public debt. And this decision has refreshed the fears of the investors, already struggling with high interest rates and an uncertain monetary policy.
Yet, according to Michael Wilson, Chief Investment Officer of Morgan Stanley And a very listened voice to Wall Street, the sale could prove to be an opportunity for purchase. Not an imminent sign of crisis, therefore, but an opportunity for return for those who believe in the Resilience of the American economy and in the medium -term prospects of the US share markets.
Because US actions could go up
The recent drop in markets It has been triggered more by fears linked to US interest rates and cutting the rating by Moody’s, than to make real worsening in the fundamentals of companies. For this reason, according to Morgan Stanley, it is a emotional reaction more than rational markets, which translates into an opportunity to purchase.
In these scenarios, the market has often reacted with excessive short -term sales, followed by rebound phases. Hence the idea that the current Sell-off can represent a window of opportunities for investors with longer time horizon.
Sectors to focus on and those to avoid
In terms of sectors, Morgan Stanley sees encouraging signals in the cyclical sectors, in particular theindustrywhich shows a positive size in the revisions of profits.
On the contrary, he invites to prudence towards the sectors of consumer goods discretionary and of basic necessities (Staples), which could suffer more the erosion of purchasing power and the pressure of the margins.
This suggests a selective positioning by investors, or You don’t have to buy everything indiscriminately, as happens in a market euphoria phase. On the contrary, it is better to carefully select the titles to buy. We need a more reasoned strategy, that points on specific companies.
Is it really better to invest now?
For those who ask if it is really convenient to invest in American titles right now, the answer is Depends. Several factors must be taken into consideration:
- the time horizon;
- the risk profile;
- the individual strategy.
But some reflections can guide a more rational evaluation.
After recent drops, many US actions, especially outside the most capitalized tech sector, have reached more attractive multiples Compared to the peaks of 2021-2022. High bond yields represent an interesting alternative, but also a risk if we consider the possible beginning of a cycle of rates In the two-year period 2025-2026
Despite the downgradeit must be said that the US economic and financial system remains one of the most solid in the world. The dollar continues to be the global reserve currency and Wall Street remains the main financial square.
Finally, many companies in the USA continue to excel in global strategic sectors, from artificial intelligence to ecological transition, passing through the defense and biotechnology.
Investing therefore in American titles, today, it could be a proactive strategy, based on an optimistic vision and on an early reading of the future movements of the market. But, as usual, it requires attention and not to leave anything to chance.
