In an interview with Bloomberg Television, top equity strategists at Morgan Stanley confirmed their bearish outlook has not changed despite the recent rally in leading technology stocks.
The strategists explained that the "hot rally" in the last quarter was mainly due to the "old economy", sectors such as finance, manufacturing, energy and commodity stocks, and was driven by expectations of a recovery in Chinese enterprises.
They noted that the technology sector is disappointing this quarter, despite its popularity and attractiveness to investors.
However, experts acknowledged that the technology sector is still showing growth, and this rally is in demand, as people are willing to buy and own such shares.
They added that "the bear market exists to deceive you, confuse you and force you to do what you do not want." Strategists believe that the main driver of the rally this year was the increase in liquidity.
As a result, bank analysts believe that fundamentals do not support the current situation on the stock market, and instability is expected in the second half of the year, which could lower the S&P 500 index.