Very Overbought Market Due for a Pullback: Morgan Stanley’s Slimmon

What is the main risk mentioned in the first section regarding cash on the sidelines?

• Investing too quickly in the market

• Not being invested in the market

• Investing in low-yield bonds

• Holding onto cash for too long

Which investment strategy is recommended in the first section?

• Buying municipal bonds

• Dollar cost averaging

• Day trading

• Short selling

According to the second section, what factor has pushed market valuations higher?

• Technological advancements

• Government regulations

• Increased consumer spending

• Rising interest rates

What does the second section suggest about the relationship between the stock market and the economy?

• The economy and stock market are always aligned

• The stock market and economy move independently

• The stock market leads the economy

• The economy leads the stock market

In the third section, what is described as a leading indicator?

• The economy

• Interest rates

• The stock market

• Consumer confidence