(CNBC) -- Morgan Stanley is warning investors to be careful when picking stocks next year because paying too much for overhyped growth names could be disastrous.
Mike Wilson, chief U.S. equity strategist at the firm, sees an "earnings recession" at some point in 2019, predicting "two quarters of negative year-over-year growth." The second and third quarters are at the greatest risk for three reasons, he explained Tuesday on CNBC's "Squawk Box." "The comparisons are very difficult. And you're going to have a massive deceleration in economic growth; not a recession but a deceleration." He's also worried about "margin pressure."