Morgan Stanley: US Political Risk Underestimated By Markets

If one were to look at the broad stock market measures since the failure of the Trump health care bill March 24, the stock market has been positive, indicating “the market” may think this to be a non-event. Not so, says a Morgan Stanley report. There is detail in the market data that shows policy concerns, it is just not seen in the broad stock market measures. But in Europe, the talk of political risk to markets is turning around and concerns are going in the opposite direction. While broad stock market measures appear unconcerned about US political risk, Morgan…