Morgan Stanley IM: The Markets Have Been Disappointing to the Upside, Presenting a Unique Set of Risks
Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer, Global Balanced Risk Control Team, shares his macro thematic views on key market drivers.23.05.2023 | 06:21 Uhr
- Markets certainly have a way of surprising and upsetting the consensus.
- Hence our guiding principle “It’s better to be balanced than defensive.”
- To us, being defensive is a style decision, whereas being balanced is focused on asset allocation decisions.
- So why is it better to be balanced than defensive? Well we believe diversified and balanced asset allocation decisions are more likely to succeed in a greater number of market scenarios, as opposed to trying to guess a specific market outcome.
- But is a balanced approach right for today’s markets? We think yes, because the risks in the market are more balanced that the consensus bearish narrative.
- Remember, as we have iterated since late last year, “risk-on is a risk” and like any other risk, needs to be hedged.
See below for important disclosures.