Morgan Stanley: Buy, Sell, or Hold?

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However, MS has witnessed a significant decline in its interest income since last year, owing largely to continued dovish monetary policy. Though the Fed forecasts two interest rate hikes in 2023, the current deceleration in economic growth due to concerns over the spread of the COVID-19 Delta variant might push that timeline back further.

Furthermore, recent concerns regarding a potential market correction coupled with a rising crackdown by China on ADRs of Chinese companies are expected to reduce the number of IPOs and SPAC deals in the near term. Consequently, MS’ revenues from its investment banking segment are expected to decline.

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