Morgan Stanley prefers value stocks over growth stocks

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".