MORGAN STANLEY: The Stock Market Is 'The Definition Of Insanity'

thenews 2013.05.06 15:18

The stock markets closed on Friday at their all-time highs.

However, one of the biggest headscratchers has been the nature of the stock market rally.

Specifically, the more conservative sectors like health care have been outperforming the more volatile cyclical sectors.

If people feel good about the economy, they should hunger for risk and invest in more economically sensitive names.

However, investors have been doing the exact opposite month after month this year.

Morgan Stanley's Adam Parker talks about this in a new note titled "The Definition Of Insanity":

Doing something over and over again and expecting a different outcome? Once again, high-beta stocks, cyclicals and smaller stocks underperformed in a strong market during April. In a break from the prior three months, junk narrowly beat quality while value beat growth.