Morgan Stanley called risk-on and ‘trust the recovery’ in 2021


Strategies at Morgan Stanley said an expected “V-shape” economic recovery, greater clarity on Kovid-19 vaccines and ongoing policy support provide a favorable environment for stocks and credits next year.

In an outlook for 2021, a team including Andrew Sheets recommended investors more equity and corporate bonds against cash and government debt, and sold US dollars. Strategists said volatility is set to decline, and investors should be “patient” in commodity markets.

He wrote, “This global recovery is sustainable, synchronized and supported by policy, much higher than in the books after the ‘normal’ recession.” “Have faith, trust recovery.”

A gauge of global stocks recorded Monday amid optimism that the expected roll-out of vaccines and additional US fiscal stimulus would affect the world economy. Nevertheless, skeptics argue that the short-term approach is challenging as nations resort to lockdowns to combat virus cases and lawmakers struggling to dent the size of US relief spending.

Morgan Stanley incorporated JPMorgan Chase & Co. and Goldman Sachs Group Inc. into painting a positive outlook for equity. JP Morgan strategist Marco Kolanovic said the US election results Build a bull case for markets, while David Costin at Goldman Sachs expects society Normalize slowly next year.

The Morgan Stanley team does not expect a smooth path and Noted These are important challenges. According to the notes — worse than risk — the Kovid-19 winter wave and the withdrawal of austerity over the long term.

Investment calls to the report include:

  • Aadhaar case for S&P 500 to reach 3,900 by end of 2021
  • The 10-year US Treasury yield is 1.45% by the end of next year
  • The US Dollar Index weakened nearly 4% by the end of 2021
  • A preference for high yield credits to avail loans over investment grade and high yield bonds
  • Forecast cuts for gold averaged $ 208 to $ 208 on average from the previous $ 1,950 expected economic recovery

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