Morgan Stanley's 2026 Outlook: "The Year Of Risk Reboot"

By Vishwanath Tirupattur, Chief Fixed Income Strategist as well as the Director of Quantitative Research at Morgan Stanley.

It’s that time again: Our 2026 outlooks for global economics and markets drop later today (full note available to pro subscribers). They are the fruit of the deep collaboration across our economists and strategists worldwide. Last year, the difficulty of predicting policy complicated our task. This year brings its own challenges, but we see key micro trends driving markets in ways that add up to a generally positive stance on risk. We enter 2026 constructive on risk assets, recommending an overweight in stocks, equal weight in fixed income, and underweight in commodities and cash. In this week’s Start, I will outline the broad contours of our outlook for the global economy and markets.