Morgan Stanley’s Top 15 Stock Picks For 2023

Ramish Cheema
11 min read

In This Article:

In this piece, we will take a look at Morgan Stanley's top 15 stock picks for 2023. For more Morgan Stanley stocks, head on over to Morgan Stanley's Top 5 Stock Picks For 2023.

If there's one thing that can be said for sure about 2022, it's that the year turned out to be a lot different than many investors, executives, or even members of the general public were expecting. The coronavirus outbreak of 2019 lasted for two years, and with it came the constant hide and seek of lockdowns. This ended up paralyzing economic activity, and the stock market was kept afloat only through stimulus measures after an initial wipeout at the start of 2020 that saw major indexes bleed as much as 30% of their values within days.

However, with 2022 starting, the virus had started to slow down and vaccinations were in full flow, giving all sectors some hope of a return to normalcy. However, generous spending by governments during the pandemic was waiting to strike back in the form of painful inflation, even as several industry leaders such as Bill Ackman warned that the Federal Reserve would have to raise interest rates. Just as this debate was going on, Russia's brutal invasion of Ukraine started in full flow, and the rest is history. The combined effect of a global energy supply chain rebalancing and a determined Fed sapped investor confidence once again, and major stock market indexes once again bled their value.

Now, as 2023 starts, investors are cautiously optimistic. Indexes such as the NASDAQ Composite, S&P 500, and the NYSE Composite are up by 14.73%, 7.5%, and 4.74%, respectively, hinting that the market as a whole believes that inflation might come down soon. This cautious aura of positivity is also present in the mind of the legendary Ken Fisher of Fisher Investments, who, in a recent video, shared a rather interesting take on why 2023 just might be the year everyone is happy:

One of the points that I have made often. I have used this for decades. It's worked regularly. And I believe it will work now in particular, is that third years of U.S. Presidents' terms - which is what 2023 is - tend to be overwhelmingly positive. We haven't had a negative third year of a U.S. President's term in the United States of America since 1939 which was only down nine-tenths of one percent. In the accurate measured history of the stock market, only down twice. The fact is 1939 as you recall, we were going into World War 2 - a pretty bad negative thing. As I have said in prior videos, talking about what I call the midterm miracle, which is the nine months that begin October 1st of the midterm election year 2022, which has worked perfectly in the fourth quarter of 2022.

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