Pace of returns likely to remain low unless earnings growth picks up: Morgan Stanley

"Each market cycle has its own characteristics, but what the past three bull markets teach us is that valuations are still not at levels that signal an end to the bull market although, of course, it doesn't mean that we could not see a significant correction," Ridham Desai of Morgan Stanley said.

He further said the pace of returns of this bull market have been modest relative to those in other bull phases, and therefore no wonder it is now in its eighth year.

Unless earnings growth picks up, the pace of returns will likely remain low, implying that at least in time terms the market may have some distance to travel, he feels.