The S & P 500 rallied 8% in a single month. That’s even with the banking turmoil, which fueled trader fears of a 2008-design and style monetary crisis. But Morgan Stanley Investment Management’s Andrew Slimmon isn’t optimistic about the current market. “Now that we have moved back again but all over again to the top rated conclusion of this 3800-4200 vary, with renewed banking concerns in the headlines, I imagine the current market is likely to frustrate the bulls,” he advised CNBC. The S & P 500 shut at around 4,119 on Tuesday. “I do not see a great deal upside in the marketplace in close proximity to-expression,” Slimmon, senior portfolio supervisor at the business, reported in notes despatched to CNBC on Tuesday. In accordance to him, that’s since there are nonetheless economic downturn considerations, marketplaces are shifting into the seasonality of lessen returns, and earnings are coming down in 2023. “We want to get to the second 50 % of the calendar year when the market place will be pricing in [earnings per share] reacceleration in 2024,” Slimmon added. Shares to invest in Slimmon claimed it’s time to invest in some “offensive” shares. The earnings slowdown could result in the sector to “form of collapse,” he explained. But any collapse won’t consider prolonged as traders will commence to anticipate a restoration in earnings future 12 months, he included. Offensive stocks are people that are inclined to do well when the market goes up, while defensive sectors are the sectors that outperform when the marketplace goes down. “So I consider it is quite harmful to own just incredibly defensive stocks … I assume you want some offensive in your portfolio,” Slimmon informed CNBC’s ” Squawk Box Asia ” on Tuesday. He likes the semiconductor sector, naming U.S. semiconductor organization Lam Analysis as just one inventory decide. He mentioned he would go for a “blend of some cyclical, additional risk-on with some possibility-off” stocks, naming shares these kinds of as Squander Administration and retailer Costco . Close to-term prospect Slimmon mentioned you will find a single area he sees as a in the vicinity of-term chance: China. He’s optimistic on the country’s financial reopening, with luxury retailers “reporting superior figures” and punters returning to Macau casinos. “If you might be a more time-term trader, this is an possibility because I feel the economy’s likely to reopen,” he reported. He named the KraneShares CSI China Online ETF to participate in the development.