Find The Best Stocks With Perfect Trade Setups In Minutes A Day

Stop wasting time looking for the right stocks.  Free training on how to find perfect stock trades that can move 300-1,500%.  Learn the # 1 key to successful stock investing and how to find success even If the market is crashing, rebounding… or just going sideways. (ad)

Do Not Delay - Click Here Now

 

5 Stocks Morgan Stanley Says Will Be Winners As Globalization Slows Down

These 5 stocks will be the ones to watch as ‘slowbalization’ takes over.

Globalization is slowing down and, according to Morgan Stanley, there are a few stocks that can help investors profit on the trend.


Hey, did you know if you really want to retire early, this free training lays it all out for you! Check it out here.


According to Morgan Stanley equity analyst James E. Faucette, names like Visa (NYSE: V), Mastercard (NYSE: MA), and PayPal (NASDAQ: PYPL) will emerge as “national champions” due to their exposure to domestic factors, importance to banking and tax collection, and their compounding growth effects.

As countries around the globe become more nationalistic, and trade wars between the U.S. and multiple countries rage on impacting global growth, the analyst “expects that the payments sector will be an on-going net beneficiary because of the long-term secular shift to electrification and compounding efficiencies,” Faucette wrote in a note to clients.

Faucette notes that payments are increasingly moving online, and countries may begin to have an interest in building their own national platforms for things like tax collections and economic data indicators, though he expects that there will be a “combination” of global networks from partner countries.

“Most countries view the payments system as a logical extension of the banking system, which many consider to be an integral part of national sovereignty,” Faucette wrote. “We expect some combination of domestically developed payments schemes and/or countries allowing global payments operations (i.e. Visa and Mastercard) access to their markets.”

According to Faucette, global payments companies like Visa and Mastercard already have a massive existing scale advantage, which makes them the logical low-cost alternative. Right now, China doesn’t yet figure meaningfully into Morgan Stanley’s investment theses for its “MVP stocks,” Mastercard, PayPal, and Visa. 

Mastercard is up 3% for the week and nearly 40% year-to-date, PayPal is up 3.37% for the week and 36% so far this year, and Visa is up 3.75% for the week and 30% for the year. All three stocks are far outperforming the S&P 500.

Much of the slow in globalization has been sparked by the ongoing stalemate between the U.S. and China in its trade negotiations, though there are other geopolitical developments that are triggering the change, including Brexit, challenges to multilateral trade pacts, the U.S. government’s moves in addition to tariffs—such as its blacklisting of Chinese telecom giant, Huawei Technologies—and the expanding authority of the Committee on Foreign Investment in the United States.

The bank also notes that there are several “pre-existing trends,” like the lessened importance of lower wages in supply chain location decisions and trade in services growing faster than trade in goods, that are also slowing globalization. 

Last month, Morgan Stanley said in a note that they divide equity sectors into two groups: those facing significant headwinds, which they call “slowbalizers,” and those with upside, called “emerging regional champions.”

Besides the “national champions” of Mastercard, PayPal, and Visa, other possible “regional champions” are Chinese internet stocks like Alibaba (NYSE: BABA), and small to mid-cap U.S. internet stocks like Yelp (NYSE: YELP), according to Morgan Stanley. This group “work with technologies and products that are sensitive to the economic and/or national security interest of their home country,” but don’t rely on access to foreign markets of a geopolitical rival.

Morgan Stanley also said that companies up against the most headwinds, or so-called “slowbalizers,” are telecoms, autos, semis, information technology, Asian tech and large U.S. tech stocks.

“For industries where the products and production processes are not critical to national or economic security, and their production is not benefited by an overseas supply chain, we think few changes will result from ‘Slowbalization,’” Morgan Stanley analyst Michael Zezas wrote in a separate note to clients. 

By the way, if you liked this article, you'll LOVE this Meaty free training I just published on the top 3 questions and challenges every investor faces AND how to overcome them. It's titled "10k into $2.4 Million in 18 months" and you can grab it for free here

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Companys software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.

FREE TRADING WEBINAR - TRADERSPRO PRESENTS: Starting With Only $10,000 Retire With $2.4 Million? Click Here Now

Join Us Now
X