Outlooks: Market and Economic Forecasts | Morgan Stanley (2024)

FAQs

What is Morgan Stanley's economic prediction? ›

Earnings Recession in 2023 to Transition to Strong Recovery in 2024. Morgan Stanley Research strategists think U.S. corporate earnings could decline 16% in 2023 but stage a comeback in 2024 and 2025.

MS currently sports a Zacks Rank #1 (Strong Buy). Over the past three months, shares of Morgan Stanley have rallied 24%, underperforming the industry's growth of 32.1%.

Recent economic indicators have prompted Morgan Stanley Research to revise its forecast for U.S. economic growth, now projecting 2.3% for 2024 and 2.1% for 2025, up from previous estimates of 1.9% and 1.4%, respectively.

Wilson sees further gains fueled by “robust earnings-per-share growth” of 8% and 13% in 2024 and 2025, respectively, from the S&P 500 companies, along with margin expansion in both years, he wrote in his note.

The US economy started 2024 on a softer note than anticipated as elevated inflation and interest rates continued to weigh on the economy. While we do not forecast a recession in 2024, we do expect consumer spending growth to cool further and for overall GDP growth to slow to under 1% over the Q2 to Q3 2024 period.

Overall, despite an expected slowdown in the coming quarters, we expect the US economy to post real growth of 2.4% this year and 1.4% in 2025. Over the entire forecast, economic growth averages 1.8% per year, slightly higher than the long-term potential of 1.5% per year.

Each company has a different approach and business model. While Goldman Sachs generates most of its revenue from investment banking, Morgan Stanley is less reliant on investment banking and has a more diverse revenue stream. Its largest revenue generator is its Wealth Management business. Goldman Sachs.

Yes, Morgan Stanley CDs are safe in that they offer guaranteed interest rates and FDIC insurance up to the applicable limits.

Morgan Stanley is known for its strong wealth management and investment management services, while JPMorgan Chase, the largest U.S. bank by total assets, offers a broader range of services including a major retail banking operation.

As a result of strong net new asset growth, the Firm has reached $7 trillion of client assets across Wealth and Investment Management. Institutional Securities also saw strength across the markets and underwriting businesses. The Morgan Stanley Integrated Firm model is delivering durable results.”

What is the best investment in 2024? ›

Based on the stock market's historic performance, there's never necessarily a bad time to buy -- as long as you keep a long-term outlook. The market can be volatile in the short term (even in strong economic times), but it has a perfect track record of seeing positive returns over many years.

As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.

Used in tandem with our revised EPS forecast of $237, this model anticipates that the S&P 500 will end 2024 at nearly 5,300 and is right in line with our new price target.

JPMorgan scrapped its recession forecast for the first half of 2024 and now sees 55% odds of a soft landing.

Steady but Slow: Resilience amid Divergence

The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023.