Rathbones' Jackson: Cyclical rally unlikely to last

Selling 'lockdown losers'

Any ‘V’-shaped recovery in cyclical stocks is unlikely to last, as there is a lot for markets and investors to “worry about and digest”, according to Rathbone Investment Management’s Alexandra Jackson.

The manager of the £40m Rathbone UK Opportunities fund said "staggering" stimulus measures from central banks and governments had buoyed markets after their Covid-19 falls into bear market territory, despite "horrifying" fundamentals. Jackson noted global lockdowns had led to an unprecedented wave of downgrades to analysts' earnings expectations, "yet central banks have never unleashed such a wave of liquidity and support so quickly". Rathbones' Stick on UK value opportunities While the stimulus "seems to have worked so far", with investors "concluding that central banks have done ...