It’s been a tough year for the stock market. A massive sell-off in the first half of the year ranks as the worst in 50 years and the bleak outlook from some of the biggest US companies weighed on market sentiment, with major US indexes in the red. This year is in the red. “We’ve been fairly consistent throughout the year on our overall thesis that the Federal Reserve is going to be strong and the growth rate is going to be disappointing. It’s been doing pretty well,” said chief equity strategist. Morgan Stanley’s US Treasury told CNBC “Squawk Box Asia” on Wednesday. “I know it’s boring, but sometimes boring is beautiful. So far, things have gone very well,” he said. Wilson isn’t the only investment guru to take a defensive stance. A raft of Wall Street investment banks are urging investors to stay calm this week amid market turmoil and to invest in companies with defensive characteristics. There have been several false forecasts during this year’s bear market, including a summer rally that saw a resurgence in tech stocks – one of the most battered sectors in the market. Half a year. But Wilson was not convinced. “There have been a couple of bear market rallies where people go back to some of the more cyclical parts of the market, or they go after some big tech names, but we I think it was a mistake. He added that cyclical parts of the market, such as technology, continue to look “vulnerable” to him. The most important quality How should investors position themselves in such a context? Wilson said companies that perform well are likely to do well in the current environment. He added that the market is rewarding companies that can effectively turn a profit, even if their revenue isn’t “necessarily growing the fastest.” “Pricing power is one of the factors that will help improve operational efficiency, but what really matters is that companies are managing costs better,” he said. The bank takes into account three types of costs: labor costs, inventory costs, and capital costs. Read more Is FedEx’s bleak outlook a warning signal for investors? Here’s what the pros say The fund manager says the bear market is going to be ‘annoying’ – but says he’s not ‘frightened’ Want to play the electric car sector? This is a lithium stock that analysts say could skyrocket 70% Wilson noted that companies with “modest” spending in these areas have been “rewarded” this year. He added that the trend is likely to persist until the market “decides it wants to be more offensive.” “That’s been our strategy and it’s worked well. We don’t want to be too cocky or, you know, too dogmatic here, but we don’t think it’s time to get down to the pieces. more positive of the market or he added.