EU Nominal GDP Growth Should Be Above Bond Yields In 2015: Morgan Stanley

For the first time since 2007, nominal GDP growth could exceed bond yields in 2015, signifying a powerful positive signal for equities, notes Morgan Stanley. Graham Secker and team at Morgan Stanley in their European Equity Strategy report dated January 5, 2015 titled: “A strong buy signal from MTI while macro data improving is highly unusual” point out it is rare to witness the Combined Market Timing Indicator (CMTI) deep in buy territory while macro data is improving. Nominal GDP growth: Unusual scenario The Morgan Stanley analysts note it is very unusual to have MTI deep in buy territory at…