MORGAN STANLEY: Own these 12 stocks from the energy and industrials sectors, which have historically outperformed the rest of the market by 11% as the economy nears the end of its growth cycle

• Morgan Stanley strategists say we’re in a late-cycle environment.
• In a recent client note, the bank listed 12 energy and industrials stocks that should benefit. 
• The list includes Howmet Aerospace, Marathon Oil, and more.

Despite stocks having technically entered a new bull market earlier this year, equity strategists at Morgan Stanley say the US economy is nearing the end of its current cycle. 

In a recent note to clients, a team of strategists led by Andrew B. Pauker said various signs point to a late-cycle environment, including the Treasury yield curve remaining inverted, The Conference Board’s Leading Economic Index still falling, stock-market breadth being weak, and some macroeconomic indicators pointing to softening.