Welcome to Thoughts on the Market. I'm Andrew Sheets, Chief Cross Asset

Strategy for Morgan Stanley. Along with my colleagues bring you a variety of

perspectives, I'll be talking about trends across the global investment landscape and how we put those different

ideas together.

It's Friday, September 6th at 2 p.m. in London.

Despite a strong performance in stocks this week, we remain cautious.

Stepping back from the flurry of headlines the

whip saw the market over the last two months, it's easy to forget that over the last

year global equities have effectively gone sideways with relatively high volatility

and with stock prices at similar levels to where they were sideways with relatively high volatility.

And with stock prices at similar levels

to where they were a year ago,

we think the risks are just as high or even higher

than where they were then.

Relative to September 2018, global growth

is significantly weaker. Bond yields are

signaling a more pessimistic view of where that economy will be in the future.

Globally, earnings growth has slowed to effectively 0 percent and geopolitical uncertainty from US-China trade to Brexit has become more uncertain rather than less.

The last 12 months have rewarded investors

expressed that caution.

the most interesting thing about this week

was not that stock markets rose, but how they did so.

...