Dan Niles: Investors need to be broadly diversified to get through market period in better shape

• The current market sell-off is influenced by geopolitical events (Iran, oil prices, yields), with uncertainty regarding the conflict's duration.
• Niles believes the conflict could be short-term, but sustained oil prices above $100/barrel would likely lead to a global recession.
• Software stocks have shown unexpected strength, with the iShares Expanded Tech-Software ETF (IGV) outperforming the S&P 500 recently.
• He advises investors to be hyper-selective and broadly diversified, noting that sectors like Utilities, Materials, Energy, Staples, and Industrials are outperforming mega-cap tech stocks year-to-date.

Dan Niles discusses the broader market sell-off driven by geopolitical tensions and rising oil prices, suggesting the conflict might be short-term but warns of global recession if oil exceeds $100. He notes the surprising resilience of software stocks and advocates for hyper-selectivity and broad diversification, highlighting the outperformance of non-tech sectors.