Morgan Stanley: European investors are looking beyond AI

Morgan Stanley analysts stated that investors should consider expanding their investments to include stocks that do not rely on AI and those that can provide returns, in order to reduce portfolio volatility. In addition, they said investors should hold stocks with continuously improving fundamentals, such as those benefiting from the reopening of the Strait of Hormuz. "Europe offers ample diversification potential, continuously improving fundamentals, and a structurally rising degree of stock dispersion." Morgan Stanley analysts believe that stocks such as UK defense group Rolls-Royce and British Airways parent company IAG will benefit from the reopening of the strait.