Market broadening could happen in second half of the year, says Morgan Stanley's Aaron Dunn

Market Overview - The market's narrowness, driven by economic uncertainty, has favored sectors like tech, communication services, utilities, and industrials, largely due to the AI trade [2] - The market anticipates a broadening, contingent on the return of corporate confidence and increased capital spending [2][3] Investment Strategy - The firm is looking for turnaround stories, currently undervalued due to a lack of underlying economic growth [4] - The firm seeks to add balance to portfolios with defensive sectors [7] - The firm focuses on execution stories, where companies are bringing projects online and expanding free cash flow [11][12] Specific Company Analysis - Clorox is viewed as a defensive company with limited downside and potential upside, especially if the market declines from all-time highs; consumer staples are at their lowest level (5%) in the S&P 500 since the tech bubble of early 2000 [6][7][8] - Steel Dynamics is considered a low-cost steel producer benefiting from protected steel industries through 232 tariffs; the company has purchased 25% of its shares outstanding over the last four years [9][10][12] - UPS is an execution story [5][11]