Morgan Stanley strategist stated that the US stock market has not fully priced in a Trump victory.On October 28th, Mike Wilson, Chief US Equity Strategist at Morgan Stanley, stated that although there are indeed some signs indicating that market participants are starting to price in a Trump victory, such as the surge in Bitcoin prices, the sharp drop in the Mexican peso, the rise in US bond yields, and the strong performance of financial and industrial stocks... the gains are not significant in most areas, except for financial stocks.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c80e0635-afa8-4965-b0b0-fcc0fcdb0be7.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c80e0635-afa8-4965-b0b0-fcc0fcdb0be7.png"/>Among major industries, financial stocks exceeded earnings expectations by the largest margin, ranking second in exceeding revenue expectations. Wilson believes that in addition to the impact of expectations for a Trump victory, financial stocks have also benefited from a strong earnings season.<blockquote>&#34;In other words, we believe that fundamental drivers have a greater impact on financial stocks, and in the future, the impact on this industry will continue to outweigh the impact of election results.&#34;</blockquote>So, in the case where a Trump victory has not been fully priced in, if he wins, will tariff-sensitive consumer stocks, renewable energy stocks, etc., rebound? Wilson is skeptical about this.In 2016, commodities, manufacturing, and industrial sectors in the US experienced deep contractions, and the market welcomed reflationary strategies; however, now, the economic cycle has become more mature, and the shadow of inflation remains significant. Wilson stated:<blockquote>&#34;In 2016, the impact of inflation on consumers was different from now, and the risks of rising bond yields due to deficit expansion were not as significant as they are now.&#34;</blockquote>

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Morgan Stanley analyst Mike Wilson pointed out that the US stock market has not fully reflected the expectations of Trump's victory, although there are signs that participants are beginning to price it in. Financial stocks have performed well, benefiting from a strong earnings season, but the overall gains are not significant. Wilson is skeptical about the rebound of other sectors after Trump's victory, believing that fundamental factors have a greater impact on financial stocks and will continue to dominate the industry's performance in the future

- Morgan Stanley's chief U.S. equity strategist, Mike Wilson, indicates that the U.S. stock market has not fully priced in a potential Trump victory.  
- While there are signs of market adjustments, such as rising Bitcoin prices and falling Mexican pesos, the overall impact remains limited, particularly outside financial stocks.  
- Wilson expresses skepticism about a rebound in tariff-sensitive consumer stocks and renewable energy stocks if Trump wins, citing a more mature economic cycle and significant inflation concerns compared to 2016.

Morgan Stanley: US stocks have not fully priced in Trump's victory