Morgan Stanley's global cross-asset strategy team, led by Greg Peters, is out with its Top 10 Asset Allocation Trades for 2013.
The trades sum up investment bank's macro views and are fairly straightforward: all of the trades consist of stocks, bonds, and currencies.
One interesting aspect of the team's recommendations: they are mostly skewed away from investing in U.S. assets, as Morgan Stanley sees other areas they think represent bigger opportunities.
Overweight stocks in Asian markets (ex-Japan)
The logic:"Attractive relative valuation, the prospect of macro improvement, and consequently, relatively lower risk to current consensus earnings forecasts"
Source: Morgan Stanley
Moderately overweight stocks in European markets
The logic:"Europe has attractive valuations relative to the US and better leverage to EM growth; we also believe stress will continue to fall in the periphery"
Source: Morgan Stanley
Underweight US stocks
The logic: "We believe that this is a crowded trade, with the most earnings risk in a relatively expensive market"
Source: Morgan Stanley
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