Morgan Stanley Sees U.S. as a Laggard in 2020 Across Markets

Strategists see S&P 500 dropping to 3,000 by end of next year
Predictions for 2019 underestimated central bank moves: Sheets

Andrew Sheets, chief cross-asset strategist at Morgan Stanley, discusses the firm’s call on markets.Source: Bloomberg

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By Joanna Ossinger

November 18, 2019 at 3:30 AM UTC

Updated on

November 18, 2019 at 1:18 PM UTC

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Morgan Stanley predicted that American equities and corporate bonds will underperform peers next year, while the dollar weakens as growth outside the U.S. picks up.

“We see the biggest potential upside in markets with a clearer path to achievable earnings growth (Japan and EM) or scope for some multiple re-rating on falling political risks (Europe),” strategists including Andrew Sheets, Michael Wilson and Matthew Hornbach wrote in a yearly outlook dated Nov. 17, with regard to stocks.