06-Nov-2026 16:38:38
MORGAN STANLEY ON US EQUITY STRATEGY ; S&P 500 TARGET 8,000 BY YEAR-END 2027
• Believes the US equity market correction is entering its final phase, with the S&P 500 catching down as market breadth improves. • Identifies 7,100–7,300 as the S&P 500 downside tactical target before aggressively adding risk. • Maintains 8,000 year-end 2027 base-case target for the S&P 500. • Declining 10-year Treasury yields and improving market breadth could support an equity recovery. • Expects US midterm elections to remove a major market overhang; historical large-cap gains average around 15% in the six months following midterms. • Financial conditions are easing, but liquidity risks and uncertainty over further Fed rate cuts remain. • Favours quality cyclical stocks with strong free cash flow, healthy balance sheets and improving earnings revisions; industrials remain a top pick.
STANLEY LIFESTYLES LTD