Below, please find June’s edition of On the Markets – Graystone Consulting’s monthly publication summarizing the Global Investment Committee’s market outlook.
The June issue includes:
“Global Equities: Developed Markets to Outperform, Lean Into US” The dominant story for equities is earnings durability in the face of macroeconomic uncertainty. With returns increasingly an earnings story, that means the outlook for equities remains positive, according to Morgan Stanley & Co.’s global equity strategy team.
“US Economics: Capex Over Consumption” The oil shock is large enough to affect inflation—but not yet economic growth, according to MS & Co.’s chief US economist Michael Gapen. Still, higher energy prices are expected to slow consumption growth later this year.
“US Corporate Credit: Writing Bigger Checks” The US credit market is at a crossroads: strong fundamentals and robust demand versus surging supply. According to MS & Co. Research’s head of US corporate credit strategy, Vishwas Patkar, credit may lag asset classes with better supply-demand balances, but spread widening should be modest
