Morgan Stanley's Kathleen Entwistle talks positioning your portfolio ahead of the new year

Market Overview & Strategy - Morgan Stanley Private Wealth Management suggests scaling back on big cap technology, not removing it entirely, due to run-ups and performance issues [2][3][5] - The firm advocates for a more equal-weighted approach, diversifying into the 493 stocks in the S&P 500 beyond the top seven [4][5] - The firm favors basic, generic companies that can leverage AI for growth, rather than focusing solely on AI companies [7] Private Markets & Investment Opportunities - The firm is increasing client involvement in private markets, including private equity, private credit, and private infrastructure, to capture wealth creation happening before companies go public [8][9][10][11] - Private infrastructure investments now include data centers and cell towers, reflecting evolving opportunities [11][12] Portfolio Allocation & Risk Management - Traditional 60/40 (equity/fixed income) portfolio allocations are evolving, with a potential shift towards 55% in equities and increased allocation to alternatives [12][13] - The firm views municipal bonds as potentially strong investments in the first quarter of next year [13][14] - Clients are showing curiosity and interest in crypto, primarily through ETFs, but are still in the early stages of understanding [14]