Morgan Stanley's Changes to the US Model Portfolio

Morgan Stanley strategist Daniel Skelly summarizes the recent changes to the US Model Portfolio.

- Adding a position in TransDigm Group (TDG) due to its exposure to commercial aerospace aftermarket, supporting our positive outlook on growth;

- Adding a position in NVIDIA Corp. (NVDA) to add a leader in the longterm AI innovation cycle after recent pullback;

- Removing American Electric Power Co. (AEP) as higher interest rates could restrain sector sentiment amid diminishing interest on its renewables transition;

- Removing Coca-Cola Co. (KO) given valuation that appears fair despite potential downside to estimates should consumer spending fade and impact pricing power.

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