Cazenove's Julie Dean says defensive growth stocks are as highly rated as in the dark days of 2008.
The summer rout in equity prices has created many substantial stock opportunities. With the UK market down 10% since the start of the year, wrong-footing a bullish consensus which is now universally bearish, and with a significant shift in the relative performance of defensive over cyclical stocks, it is tempting to take a contrary view. A number of industrial cyclical stocks now trade on valuations which over-discount the earnings risk from weakening economic growth. In contrast, the price of being bearish has risen, with many defensive growth stocks now as highly rated as in the dar...
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