Morgan Stanley CEO, Ted Pick, voiced his positivity regarding the stock market on Thursday, predicting that the US economy will maintain its superior performance into 2025.
Citing the supportive role of the US consumer and the sound condition of corporate balance sheets, he mentioned positive growth signals from the new administration, while also cautioning that uncertainties in policy could lead to some guardedness.
Pick indicated Morgan Stanley’s anticipation of a rise in the comprehensive S&P 500 index due to potential progress in sectors such as financial and industrial, supported by ongoing economic growth and some deregulation.
Despite the potential for occasional market dips, Pick expressed belief that the overriding market momentum suggests a more promising 2025. He complimented the US Federal Reserve’s cautious approach and disagreed with reversing course on a rate cut.
When asked about the risk of trade war under the impending Trump administration, Pick specified the biggest danger as a blend of geopolitical aspect and policy error, acknowledging that growing inflation could hamper growth due to inherent inflationary factors like de-globalization and potential tariffs.
Pick noted Beijing’s fight against deflation and waning consumer confidence, highlighting measures like reduced mortgage and interest rates to stimulate the economy. He concluded that both the US and China share a “mutually unified motivation” to unearth solutions that promote growth for both economies.
