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Now may be time for active stock collectors, according to Morgan Stanley. His analysis identified stocks that could have an upward trend.
Active stock collectors try to do a better job of the index, buying and selling stocks based on whether they believe individual prices will rise or fall, as opposed to passive investing that tracks the performance of an index, for example.
“The higher level of risk specific to the stock … is supportive of active stock collectors,” Morgan Stanley Analyst Alex Guerney wrote in a recent note. Guerrini said there is currently a trend towards specific equity risks, with the share price moving due to its fundamentals or the flow of news. It comes after a period of systemic risk, when stocks move together due to macroeconomic or geopolitical factors – like a pandemic.
Given this trend, Moran Stanley analysts have created a list of stocks that are “the most specific in nature with the greatest risk of specific stocks,” which they said are best for the stock picker.