Morgan Stanley's Dan Skelly on why now is the time to diversify

• Market sees a sharp reversal with leading chip stocks buckling, prompting a bid in laggard groups.
• Emerging fundamental risks in tech include pricing wars, declining GPU rental prices, and Microsoft's shift to lower-cost AI models.
• The economy is described as 'unremarkable' and inflation-resistant, with the market shrugging off policy shocks.
• Diversification is recommended, as the hyper-concentration in 'first-order AI CapEx winners' needs to roll over for broader market participation.

Dan Skelly of Morgan Stanley Wealth Management discusses the market's sharp reversal, particularly in leading chip stocks, and the rotation into laggard groups like software, regional banks, and healthcare. He highlights emerging fundamental risks in tech and advises diversification, viewing the economy as 'unremarkable' but inflation-resistant.