Mubasher: Morgan Stanley on Wednesday said that the wave of sell-offs that the global stock markets witnessed earlier this month was just an “appetiser” before an even gloomier main course.

The nine-year bull run reaches its final stages, the US leading global financial services firm warned investors.

Morgan Stanley’s models indicated that developed markets are caught in the late stages of a late-cycle environment, and a combination of softer growth and rising inflation could negatively impact the returns this year, according to The Telegraph.

On 8 February, the US stock market saw a massive drop by around 10% amidst rising expectations of Fed’s rate hike that in return increased the US Treasury’s yields.

Fears of rising inflation will propel the US Federal Reserve to hike interest rates quicker than markets’ forecast, the bank added.