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Morgan Stanley: Markets should remain cautious amid uncertainty surrounding the U.S. election

Morgan Stanley: Markets should remain cautious amid uncertainty surrounding the U.S. election

CointimeCointime2024/11/04 08:22
By:Cointime

Michael D Zezas, a strategist at Morgan Stanley, said that investors' main goal during the US election should be to establish situational awareness and avoid overconfidence in the election results and market impact. Investors may benefit from adjusting their expectations. He said that the predicted probability of a Republican victory in the market has increased, leading some to expect a clear result on election night. Morgan Stanley believes this is possible but not the most likely scenario. Both candidates do not seem to be clear favorites to win the electoral college, so a situation similar to the long vote count in 2020 may occur again. Given the poor performance of early voting data in the past, Morgan Stanley does not attach too much importance to this data and recommends not over-interpreting the short-term market trend. The company said that the market's short-term reaction to the election is often noisy and may not predict the medium-term trend. (Jin10)

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