I am recommending purchase of financial services giant Morgan Stanley (MS). The shares are down 33% from their January high to the point where they represent good value at 10X this year’s EPS estimate of $7.40 (down from $7.86 last year) . . . and the 3.8% dividend yield is attractive.

While investment banking results will remain under pressure in the current environment, fee income from the company’s investment and wealth management businesses will have a stabilizing impact. Higher interest rates will help as well.

Buy MS under $78 as I target $90.

If you are an Inner Circle Subscriber following the Model Portfolio, take a 5% position in MS in the Value Sector.