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2 “Strong Buy” Dividend Stocks Yielding 7%

Investment firm Morgan Stanley had set a 3,900 year-end target for the S&P 500 – and it’s already obsolete. The index stands at 4,196, a 7.5% above Morgan Stanley’s target. Year-to-date, despite some volatile trading, the S&P is up nearly 12%. Mike Wilson, chief investment officer and US equity strategist for Morgan Stanley has taken a deep dive into the current state of the market, and believes that values have peaked – at least for now. “We continue to believe valuations are too high and will adjust materially lower over the next six months… We’ve left the early cycle part of this recovery… the reopening of the economy is likely to put upward pressure on costs and downward pressure on margins. This will come as a surprise to now lofty earnings estimates, in our view,” Wilson explained. The markets are getting no help from tax policy, either. Wilson notes that the Biden Administration is pushing to increase the corporate tax rate to 28%, and while it is likely to compromise at a slightly lower rate, Wilson sees increased corporate taxes as a headwind for the S&P. For retail investors, this environment points toward defensive

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