Need to Know: Weaker growth will offset a Fed rate cut—so sell stocks, warns Morgan Stanley

So we start the week with U.S. stock market indexes just a few steps away from all time highs.

That is even after Friday’s extra strong jobs data rattled some investors, who worried that the Fed could be deterred from cutting interest rates in a few weeks. But according to CME Group, that cut is happening.

Our call of the day though, kicks things off with a warning from Morgan Stanley which is “putting our money where our mouth is” and downgrading global equities to underweight from equal-weight.

Here’s why: ‘The most straightforward reason for the shift is simple—we project poor returns,” said Andrew Sheets and a team of strategists.

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