Morgan Stanley said that if the volatility of the bond market does not recede, the market breadth and stock index prices will converge in the middle of next month, which will be a good opportunity to buy riskier stocks. The team of strategists led by Michael Wilson is still optimistic about large-cap high-quality stocks, especially asset-light companies with rising profit expectations. The team said that if bond volatility falls earlier, the market breadth is likely to move closer to the index price, driving both upward in the short term. The strategist pointed out that the market did not take risks lightly, including rising energy prices, the tightening of the Federal Reserve's policies, and geopolitical turmoil. Since June, more than half of the individual stocks in the Russell 3000 index have fallen by at least 20%, and the price-earnings ratio of the S&P 500 index has fallen 19 times, close to the March low.

Morgan Stanley said that if the volatility of the bond market does not recede, the market breadth and stock index prices will converge in the middle of next month, which will be a good opportunity to buy riskier stocks. The team of strategists led by Michael Wilson is still optimistic about large-cap high-quality stocks, especially asset-light companies with rising profit expectations. The team said that if bond volatility falls earlier, the market breadth is likely to move closer to the index price, driving both upward in the short term. The strategist pointed out that the market did not take risks lightly, including rising energy prices, the tightening of the Federal Reserve's policies, and geopolitical turmoil. Since June, more than half of the individual stocks in the Russell 3000 index have fallen by at least 20%, and the price-earnings ratio of the S&P 500 index has fallen 19 times, close to the March low.