A note from Morgan Stanley released Sunday...>

STOCKS: A note from Morgan Stanley released Sunday also not helping risk. MS

wrote "over recent weeks, you've heard us discussing why we think investors

should fade the optimism from the G20. Why we think bad data should be feared

rather than cheered because it will bring more central bank easing. Why we think

the market is too optimistic on '19 earnings & is underestimating the pressure

from inventories, labour costs & trade uncertainty. The time has come to put our

money where our mouth is. In light of these concerns & others, we are

downgrading our allocation to global equities from equal-weight to underweight.

The most straightforward reason for this shift is simple, we project poor

returns: Over the next 12 months, there is now just 1% avg. upside to Morgan

Stanley's price targets for the S&P 500, MSCI Europe, MSCI EM & Topix Japan

(including dividends & equally weighted). If we ignore those targets & estimate

returns for those same regions based on current valuations, adjusting for

whether returns tend to be better or worse given current econ data, the upside

is very similar (3%). There comes a point for every analyst where you need to

change your forecast or change your view. We're doing the latter."