(New York)

This might be a unique kind of bear market we have on our hands, at least according to Morgan Stanley. The bank’s chief US equity strategist says that this is a “kind of rolling bear market”. Continuing “We are not seeing an ’08 scenario where everything gets hit at once … it’s selectively hitting markets one by one and it’s a rolling sort of correction”. Since that seems to be the case, one good defensive sector to avoid turmoil might be US small caps, which are shielded from trade war and are benefiting from last year’s tax cuts.

FINSUM: We like this description of the kind of correction we are currently in. It might not be a single cataclysmic event that sends the market tumbling, but a series of blows that drives things down continuously.