Morgan Stanley IM: The BEAT for April – Our Top Themes - and One Major Allocation Change
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.05.04.2024 | 06:30 Uhr
- From an allocation standpoint, we are moving U.S. equity from Overweight to Neutral.
- We have been Overweight equities since late 2022, but are already closing in on the upper end of our year-end expectations. It’s time to take a break.
- Why? Because there were big surprise factors in 1Q that pushed equities higher, ones that are unlikely to be repeated in 2Q.
- As we see it, the market needs time to grow into equities’ revised valuations
- As for our Key Themes in April
- Fed rate cuts: The pace is in question, but the path is almost assured
- Inflation is priced to be contained over the long term
- Labor markets are cooling, not collapsing
- The land of the rising rates: changes to Bank of Japan policy
See below for important disclosures.