William J. Knowles, Financial Advisor at Morgan Stanley

Markets are surging just as earnings may have peaked

Inflation is the key to the secular bull market for stocks and secular bear market for bonds. The shift in policy from monetary to fiscal dominance is a significant change that may have big implications. Here's why:

Markets may already reflect the speed and scope of the recovery. Read more in On the Markets:

The biggest risk to equities and other long-duration risk assets will come from the interest rate channel, says MS & Co. CIO Mike Wilson. Learn more:

Interest rates tend to be slower to react to positive events than stocks, which helps explain why rates are rising lately. Read more in On the Markets:

New bull markets typically begin when a recession has ended and usually run for years not months, says MS & Co. CIO Mike Wilson. Learn more: