(Bloomberg) -- The bear market that mauled growth stocks this year now threatens the value stocks in the industrial, financial and energy stocks where investors sought refuge this year, according to Morgan Stanley’s chief investment officer Mike Wilson.

“The problem with the value stocks now is they’re probably is just as vulnerable to the economic slowdown as the over-earning growth stocks were six or 12 months ago,”  Wilson said in a Thursday interview with Bloomberg TV.

“I don’t think there’s as much of a distinction between value and growth at this stage of the economic cycle unless you’re talking about the defensive parts of value, for example utilities and staples and health care,” he said.

Wilson said there is still a case for positioning in defensive value stocks, like the utilities, staples and health care sectors, but not in industrials, financials and energy. There, an expected economic downturn in 2023 should weigh on earnings and valuations, he said

“That’s probably not where you want to be at this stage,” Wilson said.

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