Trust the economic recovery and sell the dollar – Morgan Stanley

In an outlook for 2021, Morgan Stanley strategists, including Andrew Sheets, recommend investors to sell the US dollar, and go overweight equities and corporate bonds against cash and government debt, according to Bloomberg. 

Key quotes

This global recovery is sustainable, synchronous, and supported by policy, following much of the ‘normal’ post-recession playbook, keep the faith, trust the recovery.

Analysts don’t expect a smooth path upwards and cited a worse-than-expected Covid-19 winter wave, and a return to austerity in the longer term as significant challenges.