Supreme Court Set to Rule on Tariff Authority
- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
Trade with 70% Backtested Accuracy
Analyst Views on MS
About MS
About the author

- Drug Development Lag: FDA Commissioner Marty Makary highlighted that the U.S. is falling behind China in early-stage drug development, particularly in phase one clinical trials conducted in 2024, indicating a significant competitive disadvantage that necessitates reforms to accelerate trial processes for new treatments.
- Process Bottlenecks: Makary pointed out three major bottlenecks, including hospital contracting, ethical reviews, and approval processes, which he described as 'clunky processes' that hinder the efficiency of drug trials in the U.S., impacting its competitiveness against faster-moving countries.
- Collaboration Opportunities: The FDA is exploring partnerships with health systems and academic medical centers to streamline the pre-IND process, allowing for consultations before formal application submissions, thereby enhancing the efficiency and success rates of drug development.
- China's Rise: Data shows that China now conducts more clinical trials than the U.S. and is projected to account for 35% of FDA new drug approvals by 2040, putting pressure on U.S. policymakers to take action to boost domestic innovation.
- Fee Reduction: Morgan Stanley Wealth Management announces that transaction fees for both buy and sell sides on EquityZen will be reduced from 5% to 2.5%, allowing more clients to transact at lower costs, thereby facilitating wealth accumulation.
- Enhanced Market Competitiveness: This fee adjustment not only makes EquityZen's 'Express Deals' more attractive but also lowers the minimum investment threshold to $5,000, further expanding investor participation and enhancing market liquidity.
- Strategic Acquisition Impact: Morgan Stanley's acquisition of EquityZen in 2026 aims to integrate its private market ecosystem to enhance client experience and provide comprehensive solutions, thereby gaining an edge in the competitive wealth management sector.
- Technology-Driven Innovation: EquityZen leverages its industry-leading technology platform to democratize private markets, and with the backing of Morgan Stanley's resources and expertise, it enhances the overall experience for clients and shareholders, solidifying its market position.
- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
- Fee Reduction: Morgan Stanley is halving fees for investments in private companies, making it more attractive for wealthy clients to invest in non-publicly traded businesses.
- Acquisition Impact: This decision follows the recent acquisition of EquityZen, a platform that facilitates trading of private shares, enhancing Morgan Stanley's offerings in the private investment space.
- Healthcare Sector Size: U.S. healthcare spending is projected to exceed $5.3 trillion in 2024, representing nearly one-fifth of the U.S. economy, highlighting the sector's immense investment potential and attracting long-term investor interest.
- AbbVie's Growth Potential: AbbVie (ABBV), with its diverse treatment portfolio and over 50 years of dividend growth history, is expected to achieve over 17% annual earnings growth, making it a top choice for investors.
- Eli Lilly's Market Leadership: Eli Lilly (LLY) has established itself as a leader in the obesity drug market, with tirzepatide driving success; the market is expected to reach $144 billion by 2030, with anticipated annual earnings growth of 25%.
- Bristol Myers Squibb's Challenges and Opportunities: Despite facing patent expirations, Bristol Myers Squibb (BMY) has a strong oncology pipeline and a projected 15% annual earnings growth, indicating significant upside potential for investors.
Growth of Alternative Investments: Alternative investments have gained popularity since the 1990s, especially among pensions and endowments, and are now increasingly included in individual investors' portfolios due to easier access and a wider range of asset classes.
Impact of Financial Crisis: The 2008-09 financial crisis led to more companies remaining private longer, further driving interest in alternative investments.
Challenges in Selection: With trillions of dollars pursuing private investments globally, identifying successful opportunities has become more complex for investors.
Expert Insights: Investment professionals are currently sharing their preferences for specific types of alternative investments amidst the growing market.










