The New Bull Market

In this edition of Vantage Point, we review Morgan Stanley’s recent outlook as Morgan Stanley sees growing evidence of economic cooling in the U.S., with softer labor market and inflation data reinforcing expectations for Fed rate cuts starting in September.
This macro shift, along with falling yields, opens a tactical window for equity markets—particularly in cyclical sectors. The firm expects a broader earnings reacceleration in 2025, supported by improving liquidity and a shift from cash into risk assets. In fixed income, Morgan Stanley favors high-quality credit and intermediate-term Treasuries as inflation declines.

Overall, the investment landscape is tilting more constructive across asset classes, offering opportunities for selective repositioning.