Welcome to Thoughts in the market. I'm Andrew Sheets, Chief Cross Asset

Strategist for Morgan Stanley. Along with my colleagues bringing a variety of

perspectives, I'll be discussing trends across the global

investment landscape and how we put those

different ideas together. It's Friday, March 6th at 2 p.m. in London.

Through February 24th of this year, the S&P 500 had gone 182 days, or half a year, without rising or falling more than 2%.

In the last 10 days, a 2% move has happened 7 times.

This rise in volatility is remarkable,

and one of several reasons

we're advising investors to be patient

in jumping back into the market.

The large daily moves in the market

represent two competing forces.

On the negative side, the coronavirus has had a major impact on production and supply chains in Asia

and may have negative effects on consumer confidence in Europe and the US. On the positive side, hope that this

impact would be temporary and that central banks and governments will rush to the economy's

rescue. Uncertainty about those factors unfortunately is likely to continue.

Our health care analysts think that we are still some way

from knowing when new cases of the virus will peak in the US and Europe,

and we're even farther from knowing what the full extent of the economic impact will be.

Meanwhile, while the Federal Reserve moved to take decisive action by cutting interest rates

this Tuesday, this is a uniquely difficult problem for Central Banks to address.

...