Morgan Stanley IM: The BEAT for June – Our Key Themes and Top Trade Ideas
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.06.06.2024 | 06:25 Uhr
- We are tapping on the brakes, for now, because we think markets are fully valued for a soft landing.
- In addition, we think 2H24 can be volatile due to 1) the U.S. election and 2) inflation and therefore, rate policy uncertainty.
- Risky assets are more sensitive to interest rates and we think rate volatility can rise after falling so sharply.
- Strategically, we are still optimistic about risky assets. Equities can hold gains this year and the default cycle may be tame if we have the soft landing we expect.
- Tactically, we want to enter 2H24 unencumbered by legacy positions chasing the market. We prefer to meet 2H24 volatility and opportunities with dry powder and a clear mind.