Morgan Stanley Advisor Recommends Rotating From Tech Into Energy Stocks And Gold

Morgan Stanley Private Wealth Management is advising some clients to reduce exposure to technology stocks and increase holdings in energy equities and precious metals. Kathleen Entwistle, Managing Director and Private Wealth Advisor at Morgan Stanley, made the comments in an interview with CNBC.

She noted that artificial intelligence valuations have risen sharply and that some investors are seeking other asset classes.

Entwistle stated that the market has performed strongly and that investors may benefit from adding commodities and real assets. She identified gold and silver as potential inflation hedges. The firm also highlighted energy infrastructure equities, naming SLB NV among the stocks it views as resilient in the current environment.

The recommendations follow a period in which chipmaker Micron Technology Inc. reached a $1 trillion market capitalization. Morgan Stanley has suggested that some clients lock in gains from technology holdings and reallocate to tangible assets.