Morgan Stanley IM: The BEAT for May – Our Key Themes and Top Ideas
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.07.05.2024 | 06:02 Uhr
- Our investment thesis at the start of the year was risk-on, but is now shifting toward Neutral as we build dry powder
- We downgraded U.S. equities to Neutral at the end of 1Q24, a change from the Overweight position we had held since December 2022.
- Consistent with moving U.S. equities to Neutral, we simultaneously upgraded European equities from Underweight to Neutral
- On a related note, we are now reducing U.S. High Yield from Overweight to Neutral.
- Broadly speaking, our base case remains for a soft landing.
- We think markets will be range-bound for the foreseeable future and will look to make sector rotations within a broader neutral risk exposure.
- As we see it, there will be upcoming opportunities for risk taking, but it’s necessary that we build dry powder to take advantage of them.
See below for important disclosures.