Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Morgan Stanley (MS)’s Jonathan Garner Predicts the Next Booming Stock Market

In order to provide their clients with the best possible return on their investment, financial services companies like Morgan Stanley (NYSE:MS) are always on the global look out for profitable opportunities so that they can strike while the iron is hot. Well, the iron has got a whole lot hotter in China according to Morgan Stanley’s Jonathan Garner. John Dawson reported on the analyst’s thoughts on Bloomberg.

Morgan Stanley

“Morgan Stanley (NYSE:MS)’s Jonathan Garner, Head of emerging markets in Asia, Strategy Morgan Stanley has said this, “New account openings are a sign that there is fundamental investor participation. Moves on high volumes should always be taken seriously […],” said Dawson.

The new account openings are high to an extent that there four week average hasn’t seen the levels that are prevailing now, since April 2011, according to Dawson. Moreover, the bull is already out of the cage as Shanghai Composite Index (SHCOMP) gained as much as 14% in just November.

Dawson also revealed other underlying reasons as to why Morgan Stanley (NYSE:MS)’s emerging markets head expects that there is money to be made in China.

“[…] He believes in China’s soft landing. He is forecasting what he calls the Ultra-Bull rally. The stocks may double in 18 months, so stick with that. Also low returns for alternative investments, for example property, transition in China to a growth model i.e. domestic consumption. He favors new economy areas like healthcare, technology, financials […],” said Dawson.

The change in growth model that is being mentioned here is China shifting its focus from export led growth to more organic growth in which the local population fills the gap from the shortfall of exports by consuming more.

Moreover, other numbers which point out to a continuation of this rally include the still low valuations that the market is receiving. According to Dawson the Shanghai Composite Index is still trading at 1.7 times the assets, which is a 17% discount to the World Index.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.