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‘Extreme’ Stock-Valuation Gap Looms Over Gravity-Defying Rally

  • Defensive styles look expensive in sign of investor caution
  • Morgan Stanley sees rotation potential in favor of value bets
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Source: Getty Images

As the S&P 500 approaches all-time highs, defensive investing styles are trading at their most overbought levels in decades -- a sign of investor incredulity at this gravity-defying rally.

Something may have to give.