Rudi's View: Investment Insights
By Rudi Filapek-Vandyck, Editor
Morgan Stanley forecasts a slowdown in US economic growth for 2026, with inflation expected to remain steady. Despite this, the company believes market concerns about AI bubbles and sell-offs are overly bearish.
The Federal Reserve's rate cuts are likely to be limited, and yield curves may steepen. As a result, Morgan Stanley favors larger cap and quality companies, as well as gold, with a focus on maximum portfolio diversification.
“it’s an active trader’s market, not an investor’s market”
Expected gains for US equities in 2026 are estimated at 5%-10%, with the S&P500 potentially reaching 7200.
Author's summary: Morgan Stanley predicts a moderate 2026 market.