The 'Boomcession' Phenomenon in the U.S. Economy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: CNBC
- Disconnect Between Data and Sentiment: Despite rising economic output and stock market gains, ordinary Americans are feeling increased financial pressure, as evidenced by credit card debt reaching a record $1.28 trillion in Q4 last year, indicating that economic prosperity is not benefiting the majority.
- Uneven Inflation Impact: According to Morgan Stanley, lower-income consumers faced significantly higher inflation rates for food and housing in 2024 compared to wealthier counterparts, exacerbating the gap between economic growth and consumer confidence and highlighting social inequality.
- 'Hiring Recession' in Job Market: While economic output per hour hit new highs, ordinary workers are anxious as the job market tightens, with December job openings falling to their lowest level since 2020, reflecting the disparity in economic benefits between high-income stockholders and the general workforce.
- Crisis of Trust in Economic Data: Surveys reveal that nearly 60% of Americans believe the economy is in recession, particularly among low-income households facing unstable financial situations, leading to a decline in trust in government economic data and highlighting the significant gap between economic prosperity and public sentiment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MS
Wall Street analysts forecast MS stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 171.540
Low
132.00
Averages
185.00
High
219.00
Current: 171.540
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Closes First Asset-Based Finance Securitization
- Loan Purchase Capacity: Morgan Stanley Investment Management has closed its first asset-based finance securitization through its AIP Alternative Lending Group, with an estimated total loan purchase capacity of approximately $220 million, providing scalable exposure to consumer credit and enhancing the firm's market position in this sector.
- Diversified Investment Structure: The MSABF 2026-1 securitization features a multi-tranche investment-grade note structure rated by KBRA, designed to offer investors diversified exposure to consumer credit while addressing the needs of insurance clients and asset managers.
- Stable Funding Support: This structure not only provides stable funding for loan origination partners but also helps insurance capital efficiently access consumer credit through predictable cash flows and a long-term reinvestment framework, aligning with their asset-liability management objectives.
- Global Investment Management Strength: Morgan Stanley Investment Management boasts over 1,400 investment professionals and $1.9 trillion in assets under management, committed to delivering outstanding long-term investment performance and comprehensive investment management solutions to a diverse client base.
See More
Parametric's Radius Platform Achieves 19% Asset Growth in Year One
- Significant Asset Growth: Parametric's Radius platform achieved over 19% asset and account growth in its first year, indicating strong market performance and effective fulfillment of client demand, thereby reinforcing the company's leadership in multi-asset solutions.
- Technology-Driven Innovation: The Radius platform integrates multi-asset capabilities to streamline client account management processes, enhancing client experience while achieving efficient tax management, addressing investors' urgent need for personalized solutions.
- Cloud-Native Architecture Benefits: The platform's cloud-native architecture supports efficient interaction of large data volumes, significantly increasing trading capacity and driving higher trading volumes, thus achieving tax efficiency through systematic loss harvesting and enhancing client investment returns.
- Ongoing Optimization Plans: Parametric plans to continue enhancing the Radius platform's functionalities, improving client interaction quality, reducing account activation times, and streamlining portfolio activities to adapt to evolving market demands and client preferences.
See More
Introducing Hazel: The AI Tool That Triggered a Stock Market Decline
Market Reaction: Financial advisor Douglas Boneparth noted a significant selloff in wealth management stocks due to concerns over tax planning updates related to Altruist's AI tool.
AI Transformation: Boneparth highlighted that the wealth management industry is undergoing a transformation as AI technology, particularly through Altruist’s Hazel platform, begins to take hold.
See More
The 'Boomcession' Phenomenon in the U.S. Economy
- Disconnect Between Data and Sentiment: Despite rising economic output and stock market gains, ordinary Americans are feeling increased financial pressure, as evidenced by credit card debt reaching a record $1.28 trillion in Q4 last year, indicating that economic prosperity is not benefiting the majority.
- Uneven Inflation Impact: According to Morgan Stanley, lower-income consumers faced significantly higher inflation rates for food and housing in 2024 compared to wealthier counterparts, exacerbating the gap between economic growth and consumer confidence and highlighting social inequality.
- 'Hiring Recession' in Job Market: While economic output per hour hit new highs, ordinary workers are anxious as the job market tightens, with December job openings falling to their lowest level since 2020, reflecting the disparity in economic benefits between high-income stockholders and the general workforce.
- Crisis of Trust in Economic Data: Surveys reveal that nearly 60% of Americans believe the economy is in recession, particularly among low-income households facing unstable financial situations, leading to a decline in trust in government economic data and highlighting the significant gap between economic prosperity and public sentiment.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Fed Minutes May Indicate Increased Threshold for Rate Cuts Amid Persistent Inflation: Key Points to Monitor.
- Federal Reserve Meeting Minutes: The Federal Reserve will release the minutes from its January meeting on Wednesday at 2 p.m. Eastern.
- Investor Insights: The minutes will provide investors with insights into policymakers' views on the proximity to potential rate cuts.
See More
Morgan Stanley Closes First Asset-Based Finance Securitization
- Loan Purchase Capacity: Morgan Stanley Investment Management has closed its first asset-based finance securitization through its AIP Alternative Lending Group, with an estimated total loan purchase capacity of approximately $220 million, providing scalable exposure to consumer credit and enhancing the firm's market position in this sector.
- Diversified Investment Structure: The MSABF 2026-1 securitization features a multi-tranche investment-grade note structure rated by KBRA, designed to offer investors diversified exposure to consumer credit while addressing the needs of insurance clients and asset managers.
- Stable Funding Support: This structure not only provides stable funding for loan origination partners but also helps insurance capital efficiently access consumer credit through predictable cash flows and a long-term reinvestment framework, aligning with their asset-liability management objectives.
- Global Investment Management Strength: Morgan Stanley Investment Management boasts over 1,400 investment professionals and $1.9 trillion in assets under management, committed to delivering outstanding long-term investment performance and comprehensive investment management solutions to a diverse client base.
See More
Parametric's Radius Platform Achieves 19% Asset Growth in Year One
- Significant Asset Growth: Parametric's Radius platform achieved over 19% asset and account growth in its first year, indicating strong market performance and effective fulfillment of client demand, thereby reinforcing the company's leadership in multi-asset solutions.
- Technology-Driven Innovation: The Radius platform integrates multi-asset capabilities to streamline client account management processes, enhancing client experience while achieving efficient tax management, addressing investors' urgent need for personalized solutions.
- Cloud-Native Architecture Benefits: The platform's cloud-native architecture supports efficient interaction of large data volumes, significantly increasing trading capacity and driving higher trading volumes, thus achieving tax efficiency through systematic loss harvesting and enhancing client investment returns.
- Ongoing Optimization Plans: Parametric plans to continue enhancing the Radius platform's functionalities, improving client interaction quality, reducing account activation times, and streamlining portfolio activities to adapt to evolving market demands and client preferences.
See More
Introducing Hazel: The AI Tool That Triggered a Stock Market Decline
Market Reaction: Financial advisor Douglas Boneparth noted a significant selloff in wealth management stocks due to concerns over tax planning updates related to Altruist's AI tool.
AI Transformation: Boneparth highlighted that the wealth management industry is undergoing a transformation as AI technology, particularly through Altruist’s Hazel platform, begins to take hold.
See More
The 'Boomcession' Phenomenon in the U.S. Economy
- Disconnect Between Data and Sentiment: Despite rising economic output and stock market gains, ordinary Americans are feeling increased financial pressure, as evidenced by credit card debt reaching a record $1.28 trillion in Q4 last year, indicating that economic prosperity is not benefiting the majority.
- Uneven Inflation Impact: According to Morgan Stanley, lower-income consumers faced significantly higher inflation rates for food and housing in 2024 compared to wealthier counterparts, exacerbating the gap between economic growth and consumer confidence and highlighting social inequality.
- 'Hiring Recession' in Job Market: While economic output per hour hit new highs, ordinary workers are anxious as the job market tightens, with December job openings falling to their lowest level since 2020, reflecting the disparity in economic benefits between high-income stockholders and the general workforce.
- Crisis of Trust in Economic Data: Surveys reveal that nearly 60% of Americans believe the economy is in recession, particularly among low-income households facing unstable financial situations, leading to a decline in trust in government economic data and highlighting the significant gap between economic prosperity and public sentiment.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Fed Minutes May Indicate Increased Threshold for Rate Cuts Amid Persistent Inflation: Key Points to Monitor.
- Federal Reserve Meeting Minutes: The Federal Reserve will release the minutes from its January meeting on Wednesday at 2 p.m. Eastern.
- Investor Insights: The minutes will provide investors with insights into policymakers' views on the proximity to potential rate cuts.
See More
