Investors Are Skeptical, Hesitant on Growth: Morgan Stanley’s Sheets

The video discusses the current state of equity markets, highlighting that many believe markets are priced based on future recovery expectations and stimulus. However, there is skepticism among investors, leading to cautious behavior and high cash balances. This caution may limit market downside but could support future growth if sentiment shifts. The discussion also covers the potential benefits of credit over equities, as corporate management focuses on balance sheet protection, making credit less sensitive to earnings and tax rate changes.

What potential impact could high levels of cash have on the market in the future?

In what way has corporate management's focus shifted in the current market environment?