Bloomberg Talks Morgan Stanley's Jim Caron Talks Tech Selloff
Feb 13, 2026
Jim Caron, Morgan Stanley Investment Management portfolio solutions CIO known for macro and fixed-income expertise. He discusses limited contagion from the recent software selloff. He outlines a rotation from mega-cap tech into cyclical value. He covers drivers of goods versus services inflation and the outlook for 10-year yields and Fed policy.
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Dispersion Limits Contagion
- Market repricings can be highly dispersed, creating fire breaks between public and private markets.
- Jim Caron says we are not seeing broad contagion from the software selloff into other markets.
Cyclical Broadening Is Healthy
- A concentrated market (MAG7) can mask opportunities elsewhere in the index.
- Caron views cyclical broadening into value and mid/small caps as healthy for diversified growth.
Diversify To Avoid Concentration Risk
- Maintain a diversified portfolio to avoid concentration risk in a few mega-cap stocks.
- Jim Caron emphasizes remembering the rest of the S&P beyond the MAG7 names.