Cyclical and defensive equities divergent as valuation gap widens

ON UK GROWTH

JULIE DEAN, fund manager at Cazenove Capital on UK Growth

For more informatoin on Cazenove Capital, search Adviserhound.com The UK equity market surged ahead in September with the FTSE All Share rising 6.3%. Beneath this headline figure, however, the dispersion of returns across the market was wide. The leader board was comprised exclusively of high beta industrial cyclical or growth sectors, with the top ten all outperforming the market rise by between 5% and 10%, led by the electronic and auto sectors. In a market chasing earnings and price momentum in these stocks, defensive sectors fared poorly, with those at the bottom of the perform...