From the Global Director of Research: Charts That Caught My Eye

Research evidence excerpt

From the Global Director of Research: Charts That Caught My Eye

Idea

May 27, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMFrom the Global Director of Research | North Katy L. Huberty, CFA

America Global Director of Research

Kathryn.Huberty@morganstanley.com +1 212 761-6249

Morgan Stanley Research

AnalystCharts That Caught My Eye erteam@morganstanley.com

A guiding principle at Morgan Stanley Research is to enhance

your investment process by delivering unique insights that

separate the signal from the noise. An intuitively designed and

well-crafted chart can often accomplish this with exceptional

clarity.

With that mission in mind, these charts in our recently published research stood out

to me.

1. US Quant Equity Strategy: We believe the recent selldown in the

Momentum factor looks like a positioning unwind, not a regime break.

2. US Equity Strategy: More data support our calls that earnings growth is

broadening and that stocks can keep rising if rates remain high.

3. US Credit Strategy: We expect Investment Grade spreads to widen

modestly while High Yield spreads should move sideways.

4. US Tech: Mega-cap Tech stocks are modestly less under-owned as of end-

1Q26 than at year-end 2025.

5. Japan Equity Strategy and Banks: We expect household assets to migrate

out of deposits and into investments, with a boost to banks’ ROE.

6. US Economics: We believe tariff’s pass-through effects are peaking;

Walmart's pricing strategy is helping hold back food inflation.

7. Powering AI - Asia: We expect annual energy investments in the region to

double by 2030 and become the 2nd-largest area of spending after AI.

8. Powering AI - US: Compute demand continues to exceed our expectations,

but we have lowered our projection of the 2026-28 US power shortfall.