Morgan Stanley has revised its midyear outlook, shifting to an overweight stance on US equities and US Treasuries from a previously neutral position. The firm cites a slowing yet still expanding global economy and believes that markets are underpricing potential interest rate cuts. Additionally, Morgan Stanley expects the US dollar to continue weakening, forecasting the EUR/USD exchange rate to reach 1.25 and the USD/JPY rate to hit 130 by the second quarter of 2026. The outlook also includes an expectation for gold prices to remain elevated. This shift reflects a more optimistic view on most US assets, excluding the US dollar, which is expected to depreciate. In contrast, BlackRock maintains a different positioning, with an underweight stance on US Treasuries and overweight on US and Japanese equities.