Morgan Stanley strategists believe that the leaders in the US stock market should shift to companies with stable profits, high profit margins, and strong operational efficiency. According to the team led by Michael Wilson, high-quality stocks account for 42% of the S&P 500 index, while low-quality stocks only account for 28%. He believes that as the scope of increase in profit expectations expands, the profit growth rate of the median S&P 500 companies will reach 14%. He wrote in the report, “This pattern should help strengthen the resilience of the index, expand market participation, and push the S&P 500 index to 8,000 points by the end of the year.”

Morgan Stanley strategists believe that the leaders in the US stock market should shift to companies with stable profits, high profit margins, and strong operational efficiency. According to the team led by Michael Wilson, high-quality stocks account for 42% of the S&P 500 index, while low-quality stocks only account for 28%. He believes that as the scope of increase in profit expectations expands, the profit growth rate of the median S&P 500 companies will reach 14%. He wrote in the report, “This pattern should help strengthen the resilience of the index, expand market participation, and push the S&P 500 index to 8,000 points by the end of the year.”