Market is now bottoming, says Morgan Stanley Wealth Management's Skelly

• Skelly believes the market has bottomed, with stocks appropriately oversold and risk/reward looking attractive at current valuations.
• He highlights a 'productivity boom' in the U.S. driven by innovation and technology, supporting strong earnings.
• Skelly notes that market multiples are down 18% since last fall and the VIX has come off its 30 level, indicating reduced volatility.
• He suggests that geopolitical events, like the Iran talks, often follow an 'escalate to de-escalate' pattern, which the market has learned to navigate.

Daniel Skelly of Morgan Stanley Wealth Management believes the market is bottoming, citing strong underlying narratives in the U.S. economy such as a productivity boom, innovation, and robust earnings. Despite geopolitical uncertainties and higher oil prices, he sees current valuations as attractive and expects continued stimulus ahead of midterms, with AI being a significant long-term driver.