SPY | SOURCE: THOUGHTS ON THE MARKET - MORGAN STANLEY
Feb 03, 2026 IC-REF: 5bbc6433

SPY: Regulatory Headwind vs. Fundamental Disconnect

Executive Thesis: The administration's three-dimensional economic rebalancing strategy (trade, investment, inequality) creates a foundation for sustainable nominal growth, but Kevin Worsh's Fed nomination introduces near-term liquidity tightening risk that compresses risk premiums.


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