Understanding Morningstar's Uncertainty Rating and Its Impact on Stock Investing

Morningstar Chief US Market Strategist Dave Sekera discussed the Uncertainty Rating on The Morning Filter podcast. The rating captures potential outcomes for a company's intrinsic value, with higher confidence in lower-uncertainty-rated stocks and lower confidence in high-uncertainty-rated stocks. Sekera emphasized that high uncertainty is not inherently bad, but investors should account for additional risk and require a greater margin of safety before investing.