Morgan Stanley flags 3 under-the-radar signals that show the stock market is barreling toward a new growth cycle

Core View - The US stock market is poised for a new growth cycle characterized by strong growth in asset prices and the economy, as indicated by Morgan Stanley's global head of fixed income research, Andrew Sheets [1][2] Economic Indicators - Morgan Stanley forecasts a 13% increase in the S&P 500 by 2026, driven by strong earnings growth and a "rolling recovery" in the economy [3] - Three key indicators suggest stronger earnings and economic growth than currently expected: 1. Copper Prices: Copper has increased by approximately 44% in 2025, marking its best performance since the Great Financial Crisis, indicating a favorable economic backdrop [4][5] 2. Korean Stocks: The Korea Composite Stock Price Index surged by 75% in 2025, outperforming the S&P 500's 17% gain, signaling global economic optimism [6][7] 3. Cyclical Nature of Korean Stocks: Korean stocks are considered highly cyclical and serve as a proxy for global economic sentiment, with small-cap stocks outperforming large-cap stocks [7] Market Outlook - Morgan Stanley anticipates a fresh growth cycle that will elevate stock prices in 2026, supported by rising copper prices and other under-the-radar signs of economic growth [8]