Morgan Stanley Says Steer Clear of U.S. Stocks and Bonds in 2022
- European and Japanese shares prefered over U.S. next year
- U.S. bank sees S&P 500 down to 4,400, 10-year yields at 2.1%
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Stay away from U.S. stocks and bonds next year, and seek out better returns in Europe and Japan.
That’s the advice of Morgan Stanley’s strategy team, which sees fading monetary support and high valuations holding back American assets in 2022, even as growth improves and inflation moderates. Fundamentals are more attractive in Europe and Japan, where central bankers will be more patient and inflationary pressures are lower, according to the strategists in their annual investment outlook.