Morgan Stanley Strategists Outline 2026 Outlook: Structural Inflation, AI Capital Expenditure, and Lowered Return Expectations

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BondWatch Editorial

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30-SECOND SUMMARY What Happened Morgan Stanley strategists released their 2026 investment outlooks in mid-December 2025, following a 35% rally in global equities from April 2025 lows. The firm identifies a “regime change” in inflation, noting it remains sticky around 3% (above the 2% target) despite recent Federal Reserve rate cuts. Projected US Investment Grade (IG)......

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