He owns BAC instead. In contrast to Goldman Sachs, MS is an institutional investment bank with a large wealth and asset management arm. MS has reduced the capital in their fixed income business (which demands a lot of capital), more effectively than GS has. So, MS has executed much better on that side. Not an expensive stock. If the market does really well, MS's brokerage arm should do well too.
An investment bank with strong wealth and asset management businesses. What they do that's different from its peers is that MS reduced its capital allocation into their fixed income business (whereas Goldman Sachs did not and have suffered more). Also, the brokerage and asset management operations in have done very well (better than Goldman). This makes MS better than Goldman Sachs. This and JP Morgan are more diversified than their peers.
An investment bank with strong wealth and asset management businesses. What they do that's different from its peers is that MS reduced its capital allocation into their fixed income business (whereas Goldman Sachs did not and have suffered more). Also, the brokerage and asset management operations in have done very well (better than Goldman). This makes MS better than Goldman Sachs. This and JP Morgan are more diversified than their peers.
Years after the Great Recssion, the US government has removed some regulations, freeing US banks. This leads to stock buybacks and rising dividends. MS is not a bad bank, but he prefers JPM. MS has gotten too expensive. The banks now make money in managing wealth, not so much lending money in a time of declining interest rates. You should own at least one US bank.
Years after the Great Recssion, the US government has removed some regulations, freeing US banks. This leads to stock buybacks and rising dividends. MS is not a bad bank, but he prefers JPM. MS has gotten too expensive. The banks now make money in managing wealth, not so much lending money in a time of declining interest rates. You should own at least one US bank.
He owns BAC instead. In contrast to Goldman Sachs, MS is an institutional investment bank with a large wealth and asset management arm. MS has reduced the capital in their fixed income business (which demands a lot of capital), more effectively than GS has. So, MS has executed much better on that side. Not an expensive stock. If the market does really well, MS's brokerage arm should do well too.