Morgan Stanley Warns Growth Stock Underperformance Just Starting
- Most expensive secular growth stocks still too pricey: Wilson
- Value equities are beginning to outperform growth peers
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Lagging returns from U.S. growth stocks, recently surpassed by their value peers, mark only the start of a longer-term move, according to Morgan Stanley.
The shift favors an overweight position in financials, consumer staples and utilities, said Michael Wilson, the bank’s chief U.S. equity strategist. The S&P 500 Value Index has returned about 5% since the start of August compared with the 0.9% for the S&P 500 Growth Index.