In an outlook report for 2021, Morgan Stanley (Morgan Stanley) strategists predicted that the global economy will achieve a V-shaped recovery, coupled with a brighter outlook for the new crown virus vaccine and continued policy support. The credit market provides an enabling environment.
The team of strategists at Morgan Stanley, including Andrew Sheets, recommends that investors overweight stocks and corporate bonds, underweight cash and government bonds, and sell dollars. These strategists said that market volatility will decrease and investors should “keep patience” in commodity markets.
The bank predicted in the report that by the end of 2021, the S&P 500 index will rise to 3,900 points (up nearly 9% from current levels). Specifically, the bank recommends that investors increase their holdings of cyclical stocks and reduce their holdings of defensive stocks, and it is expected that small US stocks will outperform large stocks.