The narrative surrounding the “resilient U.S. consumer,” which has been a major upside surprise in 2025, is now facing significant headwinds, according to the Global Investment Committee (GIC) at Morgan Stanley Wealth Management. While consumer spending has maintained a steady nominal growth rate of 5% to 6%, underpinning a bullish outlook for US equities in 2026, the GIC is expressing caution.
Lisa Shalett, chief investment officer and head of the GIC, warned that although the broader macroeconomic picture remains cautiously optimistic, the “K-shaped” economy demands greater scrutiny. Specif