There's a 'tectonic shift' headed for stocks, Morgan Stanley warns, thanks to a decade of slowing growth and rising wealth inequality | Markets Insider

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There's a 'tectonic shift' headed for stocks, Morgan Stanley warns, thanks to a decade of slowing growth and rising wealth inequality

The Wall Street bull in the financial district January 22, 2007 in New York City.A"tectonic shift" in US macroeconomic policy that could cause increased capital investment and be bullish for sectors like financials and consumer durables may be up ahead, according to Morgan Stanley Wealth Management's Lisa Shalett.

A decade of slowing secular growth and rising wealth inequality, paired with the failure of monetary policies to normalize growth is leading to a"tectonic shift" in US macroeconomic policy, the Morgan Stanley Wealth Management's chief investment officer Lisa Shalett said in a Monday note to clients. "The new business cycle, combined with a vastly different policy regime, should produce fresh market leadership centered on capital investment, infrastructure, housing, and a leveraged consumer sector," she added.

 

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