The CEO of Morgan Stanley is optimistic about the stock market and believes the U.S. economy is performing exceptionally well.

• On Thursday, Ted Pick, CEO of Morgan Stanley, expressed optimism about the stock market and predicted that the U.S. economy will outperform next year.
• Although he acknowledged that the market may decline occasionally, the overall trend suggests a positive outlook for 2025.

On Thursday, Ted Pick, CEO of Morgan Stanley, expressed optimism about the stock market and predicted that the U.S. economy will outperform in 2025.

"The U.S. remains the world's leader in consumer spending, according to Pick, who spoke at the Morgan Stanley summit in Singapore. He noted that corporate balance sheets in the U.S. are strong and the new administration is focused on promoting growth."

On the whole, people are continuing to be constructive, despite acknowledging that there will be caution due to policy uncertainty.

Morgan Stanley predicts that the S&P 500 will increase, with financials and industrials sectors performing well due to continued economic growth and some deregulation.

While the has experienced a 24.07% increase year to date, the has achieved a 15.13% growth.

Although he acknowledged that the market may decline occasionally, the overall trend suggests a positive outlook for 2025.

The U.S. Federal Reserve has done a "good job," according to Pick.

He said that it was the "right thing to do" for it to move cautiously, as the Fed would not want to reverse course on a rate cut.

Trade war worries

Pick stated that the greatest danger lies in a mix of geopolitical developments and policy blunders regarding the new trade war with the incoming Trump administration.

Pick added that his view is that the U.S. economy is growing, but the question is if inflation will overheat and stifle growth due to underlying inflationary factors, such as de-globalization and the potential for tariffs.

Donald Trump, the newly elected President of the United States, had warned of imposing a 60% tariff on Chinese imports to the U.S., and a 10%-20% tariff on imports from other countries.

On Wednesday, Seth Carpenter, the chief economist of Morgan Stanley, stated on CNBC that the proposed tariffs by Trump will negatively impact the U.S. economy in the coming years, specifically in the period leading to 2026.

While China is facing deflation and low consumer confidence, Pick stated that the country has implemented measures such as lowering mortgage and interest rates to boost the economy.

He stated that both sides have a shared goal of finding mutually beneficial solutions that promote economic growth for both economies.