'Do not dismiss' market: Morgan Stanley sees opportunities, even in some of the priciest groups

• The market has been on a 'tear,' and while some areas seem pricey, there are great long-term opportunities, with pullbacks being good entry points.
• Recommends adding exposure to real assets, including energy/commodities, semis, and consumer discretionary sectors.
• Suggests pulling back on bond duration due to interest rate market dynamics and focusing on US, emerging markets, and small-cap arenas.
• Emphasizes investing in 'scarcity' such as energy and modern infrastructure (e.g., communication towers, data centers) before they become too expensive, especially in an inflationary environment.

Kathleen Entwistle of Morgan Stanley Private Wealth Management sees continued opportunities in the market, advising high-net-worth clients to be selective and not dismiss the market. She recommends diversifying into real assets like energy, infrastructure, and commodities, as well as considering small-cap and evergreen alternatives, especially given potential inflation and interest rate trends.