U.S.-centric portfolios may need rebalancing for future global growth

U.S.-centric portfolios may need rebalancing for future global growth
Banking & Financial Services
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Noemie Venot Executive Director | Morgan Stanley Investment Management

For the past 15 years, U.S. equity markets have led global investing, outperforming other regions and drawing significant capital inflows. However, future economic growth and equity market performance may not be limited to the United States. Jitania Kandhari, Deputy CIO of Solutions & Multi-Asset Group at Morgan Stanley Investment Management, suggests that while U.S. exposure remains important, investors should aim for a balanced portfolio for the coming decade.

Kandhari notes that there is no assurance a portfolio will meet its investment objectives due to market risks such as economic events or natural disasters. She highlights that investments in foreign markets come with specific risks including currency fluctuations and political instability, particularly in emerging markets.

The document emphasizes that past performance does not guarantee future results and advises investors to evaluate their ability to invest long-term, especially during market downturns. It also mentions that separately managed accounts might not suit all investors and underscores the importance of considering investment objectives and risks before investing.

Morgan Stanley clarifies that the views expressed are those of the author or investment team as of the material's preparation date and are subject to change without notice. These views do not necessarily reflect those of all personnel at Morgan Stanley Investment Management (MSIM) or its affiliates.

Forecasts mentioned are speculative and may not predict future performance accurately. The information provided is based on publicly available data believed reliable but has not been independently verified by Morgan Stanley.

The document serves informational purposes only and is not an offer or recommendation for any specific security or strategy. Investors are advised to seek independent legal and financial advice before making investment decisions.

Morgan Stanley’s asset management division collaborates with various affiliates worldwide under regulatory frameworks appropriate to each jurisdiction. This material is distributed globally with compliance considerations tailored to local laws.

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