Morgan Stanley - After A Solid Quarter, Only Buy On Dips
- Morgan Stanley posted excellent third quarter earnings last week.
- Both the investment banking and wealth management business performed very strong.
- Shares trade at a fair valuation, but note that current operating conditions are very favorable already.
- Unlike many other banks which suffer from lower interest rates, Morgan Stanley might actually benefit from them.
- Given the favorable point in the economic cycle and long term risks to the business model, I only buy on dips.