'Do not dismiss' market: Morgan Stanley sees opportunities, even in some of the priciest groups
Speakers
Kathleen Entwistle
— Managing Director & Private Wealth Advisor, Morgan Stanley
Summary
Morgan Stanley Private Wealth Management sees opportunities in energy infrastructure, small caps, and gold/silver as ways to diversify from expensive tech. The firm favors real assets and is reducing duration on bonds. They believe energy holds up in inflation and recommend adding commodities and real assets to portfolios.
- Kathleen Entwistle of Morgan Stanley discusses portfolio opportunities outside of the AI/tech trade.
- The firm is putting clients into real assets including energy infrastructure and gold/silver.
- They are starting to dip into small caps as a diversification play.
- Energy infrastructure is expected to hold up well in an inflationary environment.
- The firm is pulling back on bond duration due to interest rate dynamics.
- They are increasing allocations to evergreen alternatives as non-correlated diversifiers.
- The overall equity allocation remains steady, but with a tilt toward real assets and areas that respond well to inflation.
- A larger market pullback would be seen as a buying opportunity.
Trade Ideas
Energy infrastructure holds up in inflation
Energy infrastructure is a real asset that holds up in inflationary environments and provides diversification from expensive tech stocks. The firm is actively putting clients into energy infrastructure positions.
Small caps offer diversification opportunity
Small cap stocks offer a diversification opportunity away from the concentrated tech trade. The firm is starting to dip clients' toes into the small cap arena.
Gold and silver respond to inflation
Gold and silver are real assets that respond well in the current market environment, likely due to inflationary pressures and a non-correlated benefit. The firm likes gold and silver as part of a diversified real assets sleeve.
