Despite equity markets sitting at record highs Morgan Stanley have a thesis for remaining invested in shares

Livewire News


Despite equity markets sitting at record highs Morgan Stanley have a thesis for remaining invested in shares. We remain bullish on both international and domestic equity markets, reflecting abundant liquidity conditions, attractive valuation, positive-to-robust earnings growth and positive equity supply-demand conditions. They have identified four areas of risk to monitor and their views on each of these risks. 1) Geopolitical events: Current major Geopolitical risks directly affect about 4% world GDP. 2) The Fed falling behind the curve: Morgan Stanley notes the markets appear very relaxed about the Fed making such a policy mistake. 3) Bond rally: Morgan Stanley sees bonds as overvalued, however, it does not expect an abrupt, disruptive selloff. The firm is managing this risk by being underweight fixed-income securities 4) Signs of Excess: Often precursors to market peaks, Morgan Stanley isn't seeing any signs that are particularly worrisome. Read the full article via Smart Investor: (VIEW LINK)

1 topic

Livewire News
Livewire News

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment