Morgan Stanley chief investment officer Michael Wilson is all too aware of these many problems the market is facing.
But broadly, Wilson and his peers are hopeful that the economy will continue to grow next year, spurring earnings growth along with it, pushing stocks higher.
Wilson believes that margin expansion will underpin earnings growth next year.
"Once that happens, however, and demand begins to recover, positive operating leverage resumes and drives margin expansion and earnings growth."
He narrowed his search to stocks in the top 20% of earnings stability, stocks in the top 20% of earnings quality, and stocks that were rated overweight by Morgan Stanley analysts.
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