UNVEILED: Morgan Stanley's 10 Smartest Trades For 2013

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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

See the rest of the story at Business Insider

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