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Greg Peters at Morgan Stanley recommends risk.Basically, he sees everything getting resolved favourably.
Note that he’s mainly looking at things from a credit perspective.
We maintain a positive global outlook for the next 3–6 months, and we actually recommend owning risky assets over this horizon. Of course, sequencing the re-entry is critical, particularly for the tactical investor, and we fully appreciate near-term headline risk and volatility. We would suggest owning credit over risk-free assets to satisfy duration needs. Our constructive view is supported by three pillars: (1) resilient US growth; (2) China soft landing; and (3) quieting of the European debt crisis. We think the large move in spreads provides an attractive buying opportunity for credit in the US and Europe, and the best risk-reward opportunity to add beta. Rising rates are a risk, but the carry and potential spread compression are sufficient compensation.
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