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US economy could be headed for consumer-led slowdown – Morgan Stanley



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  • Morgan Stanley Wealth Management has told its clients
    to “consider taking profits” in the consumer-discretionary
    sector and has offered three alternatives. 
  • Consumer spending contributes to more than two-thirds
    of the US economy’s growth. 
  • The firm’s investment committee said the economic boost
    from tax cuts may be short-lived, and highlighted other trends
    that could set back the American consumer. 

The consumer-discretionary sector is the stock market’s best
performer of the last decade — but now it’s time to consider
taking profits, says Morgan Stanley Wealth Management. 

The sector’s chart-topping performance on the S&P 500 is just
one reason for the recommendation offered by Lisa Shalett, the
head of investment and portfolio strategies, in a note on Monday.

Companies in the sector range from automakers to apparel makers
and casinos, which make goods and services that consumers splurge
on. Consumer spending contributes to more than two-thirds of the
economy’s growth. …


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