Mike Wilson, Chief Investment Officer and Chief U.S. Equity Strategist for Morgan Stanley – Although market volatility continues to decrease, the volatility of popular momentum strategies is increasing—which suggests a coming rotation to early cycle stocks.
Economies move in cycles. However, these cycles only matter for financial markets at turning points because most of the time the economy is in an expansion phase. Such turning points include periods when growth accelerates or decelerates, but the economy is still expanding. Economic recessions are different, however. These are periods when growth is actually negative and the economy is shrinking. Recessions are also rare, occurring just once per decade in the US.
https://www.morganstanley.com/ideas/thoughts-on-the-market-wilson
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