The Big Declines Aren't Over For Techs and Growth Stocks

As the stock market recovers from its recent pullback, many investors are breathing a sigh of relief, and some market pundits are forecasting more gains ahead. However, Morgan Stanley's U.S. equity strategy team sees major risks ahead for the market as a whole, and for 3 key sectors in particular. "We continue to believe we are in the midst of a rolling bear market across all global risk assets caused by a drain in liquidity and peaking growth," they write in their latest Weekly Warm-Up report. "Until last week, [Consumer] Discretionary, Growth, and Tech had been among the last holdouts but we do not think the pain is over for Growth, [Consumer] Discretionary, and Tech," the report continues.