Morgan Stanley IM: The New Normal: Higher-for-longer is likely and risk has a cost in a new regime
We are in a new regime where “higher-for-longer” is likely and risk has a cost. We believe a diversified allocation is essential in this increasingly unpredictable environment. Our value philosophy focuses on quality, leading companies that are mispriced or misunderstood by the market and are trading at a discount to their intrinsic value.03.01.2024 | 07:02 Uhr
KEY TAKEAWAYS
1.The post-global financial crisis period through 2021 was an anomaly; we are now closer to the ~50 years that preceded this 15-year-long anomaly.
2. Without the Magnificent Seven, the Russell 1000 Growth Index’s returns are far more like those of the Russell 1000 Value Index in 2023.
3. We are now in a different rate regime, where there may not be one winner who takes all, and where a balanced equity exposure is essential.