Economics & Strategy – Equity Strategy: Third

In third place for a second consecutive year is the five-member squad at Morgan Stanley headed by Graham Secker, who also pilots a team that scores a runner-up position for its coverage of the U.K. In light of ongoing fiscal uncertainty in the U.S. and continuing weakness in Europe, the London-based strategists believe the most likely rebound in 2013 will be in China. “It’s not going to be a very strong recovery,” Secker cautions, “but we think it will be a moderate recovery that has a little bit of duration.” Accordingly, the group is directing clients toward companies with exposure to China and other emerging markets, especially in the mining and autos sectors. “We’ll see a rotation away from domestic names within Europe and into emerging-markets names,” Secker predicts. “Valuations are reasonably attractive because they have underperformed, and I think investors will need to start buying stocks again.” The Morgan Stanley researchers have a “good strategic vision,” asserts one money manager headquartered in Spain.

— Carolyn Koo