Morgan Stanley Maintains Bullish Equity Stance Amid Recession Warnings
Morgan Stanley remains overweight on equities despite a three-month global energy disruption, betting on AI-driven growth and resilient consumer spending. Analyst Seth Carpenter highlights capital expenditures in artificial intelligence, wealth-fueled consumption, and labor market recovery as key economic pillars.
The bank projects the Federal Reserve will hold rates through late 2026, with potential cuts in early 2027. While forecasting oil at $90/barrel by December, it warns elevated energy prices could trigger recessionary risks. Notably, firm insiders sold $17.7 million in shares without any purchases during this period.
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