Cross-Asset Playbook: Climbing the Wall of Worry

Research evidence excerpt

Cross-Asset Playbook: Climbing the Wall of Worry

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CROSS-ASSETCROSS-ASSET PLAYBOOKPLAYBOOK || JULYJULY 16,16, 20262026

July 16, 2026 10:13 AM GMT

GLOBAL CROSS-ASSET STRATEGY M O R G A N S T A N L E Y R E S E A R C H Cross-Asset Playbook – July 2026 Global

Morgan Stanley & Co. LLC Climbing the Wall of Worry

Serena Tang

Extel Survey Is Open Strategist

Multi-Asset Allocation Recommendations serena.tang@morganstanley.com +1 212 761 3380

If you’ve found our research useful this past

year, we’d appreciate your vote for our team

in the 2026 Extel Global Fixed Income Poll, Morgan Stanley India Company Private Limited+

especially in USA/EMEA/Asia Cross-Asset Soham Sen

Strategy categories. Thank you! Strategist soham.sen1@morganstanley.com

+91 22 6880-1207

AI: The Upside Risk And Downside Risk?

Morgan Stanley & Co. International plc+ We firmly believe the AI-capex narrative

Erika Singh-Cundy remains intact, but stretched valuations,

Strategist

deluge of debt issuance raising capex- erika.singh-cundy@morganstanley.com

discipline questions, and heavy consensus +44 (0)207 425 0960

positioning have added to market jitters. We

think these are risks to volatility, not returns – Morgan Stanley & Co. International plc+

the broadening rally can continue. Yimin Huang

Don’t Let Worries Wear You Down yimin.huang@morganstanley.com

+44 (0)207 677 2870

Risk assets have to contend with other worries

as we head into 2H26 – uncertainty around the Sign up here: If you didn’t receive this directly, but

would like to, please click here. energy prices, the Fed, and geopolitical risks.

While concerns around these and AI should

not be dismissed, macro and micro

fundamentals remain healthy, a good backdrop

for risk assets.