A Trio Of Summer Risks (And Banker Vacation Backlogs)
For most, if not all, of the 12 months since the initial US lockdown, Morgan Stanley's analysts have steadfastly adhered to some version of the "V-shaped" recovery story.
That goes for both the economy and asset prices. As implausible as it may have sounded early on, it's turned out to be mostly correct. Obviously, the US labor market is still miles from pre-pandemic levels of employment, and the virus itself is still exacting an enormous daily toll on humanity, with India now on the frontlines
Are analysts just not convinced that the Fed will remain accommodating for at least the intermediate future? Is just that ingrained in Wall Street that higher inflation means less QE and/or raising rates?