Morgan Stanley's Shalett Sees Capital Markets Diverging From Economy

The video discusses investment strategies focusing on value and defensive stocks amidst market conditions. It highlights the divergence between economic performance and market trends, noting potential headwinds like wage growth and tariffs. The impact of tax cuts on company margins is analyzed, with a focus on how these cuts have influenced bottom-line growth. The video concludes with a discussion on sales growth and anticipated pressures on operating margins due to rising costs.

What are some potential headwinds that could impact company earnings?

What does the speaker predict about operating margins in the near future?