Top pick is developed market equities, expect 10% gains; corporate bonds should outperform govt bonds, USD rally to broaden, Morgan Stanley writes in 2014 global strategy outlook.
Key ideas:
* For European stocks go long financials and short cyclicals * Asian equities: Long Nikkei, HSCEI, Kospi, Taiex; short CNX Nifty, JCI, SET, FBMKLCI, FSSTI * In U.S. stocks prefer health care over staples;technology over discretionary; chemicals over industrials and energy * Buy U.S. credit vs European credit * Long USD interest-rate volatility * Buy Spain over Italy sovereign bonds * Long U.S. IG long-duration discount bonds versus UST * Short EM sovereign credit * Long new-issue CLO equity