Morgan Stanley Sees U.S. Equities Underperforming in 2020

The transcript discusses the outlook for US equities, predicting underperformance due to weak earnings trends, stretched valuations, and political uncertainty. It highlights the role of central bank policies and the need for fundamental growth drivers. The global market performance is compared, with Europe and Japan expected to outperform the US. The potential for European market outperformance is noted due to low valuations and high yields. The transcript also covers the credit market environment and the outlook for sovereign debt, particularly US Treasurys.

What factors are contributing to the expectation that US equities will underperform next year?

What is the significance of central bank policy in the context of equity markets?

How does the economic outlook for growth differ between the US and markets outside the US?

In what ways has the performance of European equities compared to US equities over the last 12 months?

What challenges are faced by corporate credit in the current market environment?