Morgan Stanley analysts, led by Lisa Shalett, forecast a 6.3% annual return for the S&P 500 over the next seven years, a significant decline from the previous 15% due to high starting valuations and anticipated economic slowdowns from tariffs. In contrast, they predict emerging-market equities will return 8.9% annually and Asia-Pacific equities 7.9%. Investors are encouraged to consider the Vanguard FTSE Emerging Markets ETF (NYSEMKT: VWO) and Vanguard FTSE Pacific ETF (NYSEMKT: VPL) for better opportunities.
