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Why the Rotation Out of Growth Stocks Spells Trouble for the Markets

Why the Rotation Out of Growth Stocks Spells Trouble for the Markets

Among the leading Wall Street firms, Morgan Stanley has been perhaps the most persistently bearish about the stock market since the latter half of 2018. Now, just as the bulls are reveling in the market's rebound to new record highs this week, a report from Lisa Shalett, chief investment officer (CIO) at Morgan Stanley Wealth Management, warns about "the vulnerability of growth stocks" and the negative consequences that this may have for the market as a whole. "One of the most durable characteristics of the 10-year bull market in stocks has been the leadership of growth-style stocks—and in particular, technology stocks.