Takeaways & Key Expectations
July 16, 2019
Equity Market Commentary - July 2019

Takeaways & Key Expectations

Equity Market Commentary - July 2019

Equity Market Commentary - July 2019

Share Icon

July 16, 2019


The stock market is hovering around its all-time high, and yet investor bullishness is surprisingly low. $150 billion has flowed out of global equity funds year-to-date, despite the fact that the market is off to its best start to a year since 1997.1 The week leading up to July 4th experienced $28 billion of net outflows, one of the worst weeks in the past 12 years,2 and yet the S&P 500 is hovering around 3,000. What gives? Andrew Slimmon makes the case that the stock market is a forward predictor, and that while a summer correction is a strong possibility, the market will be well above 3,000 by year end. He summarizes his position with a reference to investor behavior; “If there is a high level of conviction that we are late cycle. . .then we are not.”

Head of Applied Equity Advisors Team
Applied Equity Advisors Team

1Goldman Sachs: July 1, 2019

2Evercore ISI Morning Economic Forecast. July 3rd, 2019

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

This general communication, which is not impartial, is for informational and educational purposes only, not a recommendation. Information does not address financial objectives, situation or specific needs of individual investors.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Prior to making any investment decision, investors should carefully review the strategy’s / product’s relevant offering document. For the complete content and important disclosures, refer to the link above.


It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.

Not FDIC Insured—Offer No Bank Guarantee—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit

Subscriptions    •    Privacy & Cookies    •    Terms of Use

©  Morgan Stanley. All rights reserved.

Morgan Stanley Distribution, Inc. Member FINRA/SIPC.