Potential for a recession is less than 30%, says Morgan Stanley's Lisa Shalett

• Equity market continues to exhibit resilience and complacency, with analyst earnings revisions remaining positive.
• Macro headwinds include rising rates, flattening yield curves, and a radical repricing in global bond markets due to central bank actions.
• Identifies 'buying opportunities' in select software, Mag 7, financials, and health care.
• Globally important banks are looking at significant regulatory reform and possess excess capital that can be put to work.

Lisa Shalett of Morgan Stanley Wealth Management discusses market resilience despite macro headwinds like rising rates and central bank pivots. While acknowledging potential supply chain pressures and stagflation risks, she notes positive corporate earnings revisions and identifies buying opportunities in select software, Mag 7, financials, and health care.