Morgan Stanley: ‘We do not yet know where trade policy will settle’

Says that as the year progresses markets will calibrate further clarity on trade policy against attacks and deregulatory pillars of the agenda as the U.S. endeavors to rebalance the physical equation and assert the national interest. Says the outlook is necessarily less predictable during this “adjustment” period. Says the stock, bond, and currency markets are exhibiting the kind of overnight and intraday volatility that reflect rapidly changing probability assessments of different policy outcomes. Comments taken from Q1 earnings conference call.