Morgan Stanley flags energy security as a top investment theme

The Iran war has left investors seeking hedges amid rising volatility. Jitania Kandhari, deputy CIO of the solutions and multi-asset group at Morgan Stanley Investment Management, says energy security is the trade to watch during the conflict and beyond. She argues that countries will seek more secure, less dependent energy supplies and that resource security is shaping global power dynamics.

Kandhari's team has focused on geopolitical hedges such as defense and energy stocks and has recently increased exposure to energy security and production. They expect governments to support the energy supply chain through policies like subsidies or tax benefits.

The team sees opportunities in renewables and in critical metals such as copper and uranium needed for nuclear facilities, along with potential gains for defense and cybersecurity firms as countries bolster safety infrastructure.

Iran

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