Morgan Stanley has advised investors to lock in gains on US defensive stocks, citing their recent outperformance and resulting high valuations. The firm has moved to a neutral stance on defensives versus cyclicals and has also recommended that investors stop prioritizing Chinese stocks listed on the mainland over those trading overseas. This shift in strategy is attributed to slowing buying by the national team and a strengthening yuan. Additionally, veteran chartmasters and investment legends like John Rogers of Ariel Investments continue to advocate for value investing, emphasizing its potential even in a market perceived as top-heavy. Morgan Stanley’s Wilson and other strategists have highlighted these changes.