Investing.com - Trade wars? Inflation? Don't worry, says Morgan Stanley (NYSE:MS).The Wall Street firm says both threats have been overblown, leaving the stock market free to set new highs.In a note to investors, Morgan Stanley said the Trump administration would not want to "destabilize global equity markets" with a trade war because it could lead to a GOP defeat in the midterm election later this year. Meanwhile, worrisome signs of inflation that surfaced in January failed to appear again in February, allowing the yield on the 10-year Treasury note to stabilize below the psychologically important 3.00% level.Both JPMorgan Chase (NYSE:JPM) and BlackRock have also issued bullish market forecasts since the February correction.