(New York)

The S&P 500 and most major indexes have been fairing poorly very recently. However, that presents a major opportunity, says Morgan Stanley strategist Michael Wilson. Morgan Stanley says that as the market declines, now is a great time to shift out of growth stocks and into value. Growth stocks’ forward earnings multiples versus value stocks do not merit further outperformance, so its seems likely that value stocks may start to shine. Energy, industrials, and financials value stocks seem a smart choice, says MS.

FINSUM: This makes sense to us. As economic growth starts to taper, the big valuation gap between growth and value stocks seems likely to fade, meaning the latter should outperform. But then again, that would go against a decade of momentum, so it is a dicey bet at best.