Portfolios Should Be Conservative Right Now: Morgan Stanley IM

The video discusses the impact of market feedback loops on the economy, highlighting the risks associated with high household equity ownership. It advises a conservative investment approach due to virus-related market volatility. Central bank actions, particularly in China, are examined, noting that 2020 was not expected to be active for central banks. The necessity of fiscal stimulus over monetary policy is emphasized, with examples from Japan and Korea. The US economic outlook is analyzed, focusing on the tug of war between weak business investment and strong consumption, and the potential impact of the coronavirus on these factors.

What role does fiscal stimulus play in the current economic environment?

How has the coronavirus impacted business investment and consumer behavior?