Morgan Stanley's Ben Huneke: Asset owners are moving more capital into private markets

Market Trends & Investment Strategies - Morgan Stanley highlights two key client concerns: American exceptionalism and tax implications from market appreciation, particularly in the "Magnificent Seven" stocks [2][3] - Investors are considering diversifying away from the US at the margin, exploring markets like Japan, China, India, and Europe [6] - Dollar depreciation makes it tougher for international investors to stay invested in the US [6] - The percentage of market capitalization in the US is at an unprecedented level [7] - The index is very concentrated in a few names, driving interest in private markets [9] US vs Global Markets - 70% of the acqu now is allocated to the US [2] - Nvidia's market cap is bigger than every market except Japan [7] - The market value of all stocks in Germany is less than Nvidia's [8] - Investors should be looking for opportunities outside the US [8] Currency Impact - The dollar's slide against many world currencies is an underreported story [4] - Dollar depreciation is a significant factor for foreign investors when considering investments in the US [6] - If the dollar appreciated, that's actually alpha to foreign investors [6]