Geopolitics tends to create good buying opportunities, says Morgan Stanley's Andrew Slimmon

Summary

Andrew Slimmon from Morgan Stanley discusses the current market environment, emphasizing strong earnings revisions as a positive micro factor. He argues that geopolitical tensions often create buying opportunities, and that investing in companies making AI capex before results appear is attractive. He also shares his view on oil prices, suggesting being bearish near triple digits due to increased supply.

• Market is balancing good earnings revisions against macro geopolitical risks.
• Geopolitical events tend to create good buying opportunities for investors.
• AI disruption is ongoing, with companies investing heavily in capex before seeing returns.
• Oil prices are unlikely to reach $150; typical retracement to $80 may occur.
• S&P 500 forward earnings are $375, with a 20x multiple implying 7500 target.
• Investors learned from last year and are now buying dips, preventing big declines.
• Higher oil prices are a concern but may be offset by tax refunds.
• President Trump's statements on tariffs and oil are being discounted by the market.