Morgan Stanley's Caron Says This Is a Stock Pickers Market

Hinzugefügt: 2026-06-03

[00:00:00]ECONOMY THAT HAVE BEEN HELD BACK BY HIGHER COSTS OR DO THESE BE THE LEADERS DESPITE SOME OF THE CONCERN WE'VE SEEN.

[00:00:04]ADDING SOME WEIGHT TO SERVE RECORD-BREAKING RALLY.

[00:00:09]THE FIFTH STRAIGHT DAY OF GAINS. THIS IS NO LONGER A ZERO RATE WORLD. SELECTIVITY MATTERS ACROSS EQUITIES AND FIXED INCOME. JIM IN SOME WAYS FORGIVE THE SNARK IT FEELS LIKE BIG TECH AND SEMI'S AND RIDE THE BALL.

[00:00:25]WHY DO YOU THINK IT'S MORE COMPLEX THAN THAT?

[00:00:27]FOR DIVERSIFICATION REASONS. A LOT OF REALLY GOOD INFORMATION TODAY. THIS IS A VERY SELECTIVE MARKET, IT'S A STOCK PICKERS MARKET. WHENEVER YOU'RE CONSTRUCTING A PORTFOLIO YOU WANT TO HAVE DIVERSIFICATION BECAUSE YOU WANT TO HAVE TWO BIRD -- DURABILITY OF RETURNS.

[00:00:49]JUST PICK THE SEMI SECTOR AND HOPE FOR THE PAST, THAT'S NOT ENTIRELY WRONG BUT IT'S NOT A VERY DIVERSE PORTFOLIO.

[00:00:58]WHAT WE'VE BEEN LOOKING FOR IS A BROADENING OF THIS RALLY AND WE SAW THAT IN THE BEGINNING HERE THEN WE HAD THE CRISIS BETWEEN THE U.S. AND IRAN IN THE MIDDLE EAST.

[00:01:10]THAT BECAME MUCH MORE OF A NARROW RALLY AS THE SEMI'S PERFORMED EXTREMELY WELL BUT WE STILL THINK IT WILL BROADEN OUT.

[00:01:19]THE WAY WE THINK ABOUT CONSTRUCTING A PORTFOLIO IS HAVING A GOOD BALANCE BETWEEN SMALL-CAP, MID-CAP AND LARGE-CAP BUT YOU HAVE TO HAVE SOME OF THE TECH SECTOR ENDS WELL.

[00:01:30]THE QUESTION WE HAVE IS WHAT DO YOU DO WITH BONDS.

[00:01:34]PERFORMANCE THIS YEAR HAS BEEN ROUGHLY FLAT TO SLIGHTLY DOWN BECAUSE INTEREST RATES HAVE MOVED HIGHER.

[00:01:42]SO WHEN WE THINK ABOUT HOLDING BONDS PORTFOLIO WE THINK ABOUT IT MORE FROM ITS INCOME AND CARRY PERSPECTIVE AS OPPOSED TO HAVING DURATION CONTRIBUTE TO RETURNS MEANING WE DON'T WANT TO BE RELIANT ON INTEREST RATES TO MOVE DOWN TO GENERATE RETURNS AND FIXED INCOME. THE SHORT-TERM FIXED INCOME IN