The economy continues to have a tremendous amount of momentum, says Morgan Stanley's Daniel Skelly

Market Overview - The current market is experiencing minor declines, with major averages down by 1% or less, indicating a resilient market despite expectations for a pullback [1][2] - The economy shows strong momentum, supported by recent GDP revisions and the ongoing AI super cycle driving mega-cap tech stocks [2][3] Investment Strategy - Wealth management emphasizes that today is a good day to invest, particularly for long-term goals such as retirement and education [3][4] - For those nearing retirement, a conservative approach focusing on dividend growth or income stocks is recommended, as these have underperformed in the recent risk-on growth market [4] Bull Market Analysis - Historical data suggests that bull markets average around 8 years, and the current market is only 2.5 years into its cycle since the lows in late 2022, indicating potential for further growth [5][6] - The NASDAQ is currently trading about 12% above its 200-day moving average, significantly less than the 50% seen during the tech boom in 1999, suggesting the market is not in a bubble [6][7] Sector Focus - Healthcare is highlighted as an attractive sector, currently trading at its lowest relative weight in the S&P since 1994, with big pharma stocks trading at a 30% discount to the S&P [10][11] - The sector has faced challenges due to policy and higher interest rates but is expected to benefit from AI advancements in the long run [11][12] Geopolitical Risks - Geopolitical risks, particularly concerning Ukraine and Eastern Europe, are becoming more concerning, with potential implications for oil prices and the economy [14][15] - Despite these risks, the consumer-driven economy remains strong, with oil prices trading in the low to mid-60s, suggesting resilience [15][16] Economic Outlook - Confidence in avoiding a recession is high, bolstered by tax deals and enthusiasm around AI, with expectations of only minor market drawdowns of 5-10% [16][17] - The absence of conditions typically associated with bear markets, such as economic recession or earnings contraction, supports a positive outlook for the market [17]