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Morgan Stanley — which called the market pullback in October — is now urging investors to buy equities again.
"Bottom line, it's time to start adding risk again, but selectively," Morgan Stanley chief U.S. equity strategist Mike Wilson told clients on Monday.
Heading into the new month, the Wall Street firm told clients to buy stocks set to see the biggest jump in their earnings outlook next year as the economy recovers. Morgan Stanley said the driver of the next leg in the bull market will be earnings, not valuations.