Morgan Stanley IM: Higher Risk, but Lower Volatility? We Are Tapping on the Brakes. . .for Now
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.29.05.2024 | 06:52 Uhr
- Entering June we are headed into the dreaded 2nd half of the year, where economic activity is expected to slow – at least as far as the narrative goes.
- GDP should decelerate as the higher-for-longer policy strategy reaches a tipping point and the surprise factors that resulted in higher equity earnings are less likely to repeat in 2H24 – again, as the narrative goes.
- But markets aren't priced this way. Given that markets are forward-looking one would think that volatility would be rising sharply, but it's not. So what gives?
- We discuss in this audiocast.
See below for important disclosures.