Welcome to the thoughts on the market. I'm Mike Wilson, Chief Investment

Officer and Chief U.S. Equity strategist for Morgan Stanley.

Along with my colleagues bringing you a variety of perspectives, I'll be talking about the latest trends in the financial marketplace.

It's Tuesday, January 21st at 9 a.m. Easter.

So let's get after it.

Well, it took a few months, but it appears that everyone now is on board with the bulk case for stocks and credit.

However, there are variations in the preferred narrative along the continuum of fundamentals and liquidity.

More specifically, the bulk case goes something like this.

Global growth is bottoming thanks to progress made on Brexit and U.S. China trade relations.

Comparisons are relatively easy from last year,

and central banks are doing whatever it takes to make sure the economy doesn't slip into a recession.

Such a combination is quite an elector for asset prices, particularly when they are starting

point was so bearish for sentiment last summer when most investors were contemplating an imminent

recession. Our view has been in the middle of that continuum although we are

probably skewed a little more toward a liquidity argument than others as the primary

driver of asset prices more recently.

As for sentiment and positioning, we are now observing readings that are 180 degrees

from where they were last summer.

While sentiment has registered meaningfully higher readings in the past,

positioning is right at the all-time

highs, at least in the institutional world.

Asset managers and systematic strategies have rarely been this lever to equity and credit.

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