(MT Newswires) -- Mike Wilson, Morgan Stanley's chief investment officer, notes that the stock market is currently being driven by very accommodative financial conditions and abundant liquidity, which favour high-quality, growth-oriented stocks. Wilson points out that this is a good environment for stock picking, where the winners and losers are clearly identified by the market.

He explains that operational efficiency is a key success factor for companies, regardless of their sector of activity. Companies that manage their costs well and adopt innovative technologies, such as artificial intelligence, to optimise their operations are the ones that stand out. Wilson mentions that company size can also be a significant competitive advantage.

Wilson is seeing an increase in speculative activity on the markets, particularly in daily expiry options trading, which may indicate a high level of exuberance. However, he adopts a cautious stance, refusing to justify higher price targets by higher multiples in the absence of earnings growth in the global economy. He recommends a selective and active approach to portfolio management, rather than relying on passive index buying.

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