Morgan Stanley is warning that the stock market’s economic recovery trade may soon be over. Here are 4 strategies they recommend for finding the returns that still exist

• Investors have shifted into cyclical assets lately as COVID-19 vaccines are on the way and the economy gets set to recover.
• But Morgan Stanley’s Mike Wilson is warning that valuations are getting too high, and that a near-term pullback may in the cards.
• He laid out four strategies to still find returns in cyclicals.

With the extreme valuations of some large-cap growth stocks and the discovery of multiple effective COVID-19 vaccines, it’s been a near-ubiquitous message on Wall Street lately: cyclical assets – those whose value appreciates during early-cycle economic activity – are the place to be.