Below, please find December’s edition of On the Markets – Graystone Consulting’s monthly publication summarizing the Global Investment Committee’s market outlook.
The December issue includes:
“Picking and Choosing” Noting that the year ahead is likely to be rewarding but volatile, Lisa Shalett, Morgan Stanley Wealth Management CIO and head of the Global Investment Office, suggests active risk management as we head toward the fourth year of the equity bull market. With AI adoption taking center stage, she recommends looking for opportunities in financial services, health care and business services.
“US Economics: Emerging From Policy Uncertainty” After near-term pressures subside, US growth should accelerate while inflation declines in the second half of 2026. Meanwhile, according to Morgan Stanley & Co.’s chief US economist, Michael Gapen, the “K-shaped” economy is expected to split industry performance amid ongoing pressure for low- and middle-income households.
“Global Equities: Earnings and Policy Tailwinds Support US Outperformance” The US is expected to top other regions in earnings per share growth while enjoying an unusual combination of procyclical policies. MS & Co.’s global equity strategy team also sees a similar, positive narrative for Japan.
