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Securities are taking over from US growth stocks, according to Morgan Stanley's equity strategies.
The bank's strategists recommend a higher proportion of equities traded at low ratios and a lower proportion of stocks of high-growth companies, writes Business Insider.
For a long period of the year, the situation seemed different, as growth stocks far outweighed value stocks.
"We think that there is a big change in leadership from growth to value, which could prove more persistent than most people think," said Mike Wilson, CEO of US stocks at Morgan Stanley, in a mail.
Rising interest rates are a factor behind the expected rise, prompting the market to start touting low valuations. In 2019, Mike Wilson expects the S & P 500 to finish the year at 2,750, which would represent a modest increase over the last bidder 2,673. Chefsstrategen expects however to high volatility during the year due to a "significant slowdown in earnings growth".
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