Cyclical stocks to benefit from upturn

For months, we have been arguing that the UK market's defensive composition, via its reliance on sec...

For months, we have been arguing that the UK market's defensive composition, via its reliance on sectors such as pharmaceuticals, oils, banks and utilities, which comprise 48.4% of the FTSE All-Share Index, makes it relatively attractive during periods of market turbulence. Market performance over the last year bears this out with the FTSE 100 Index outperforming the main market indices in the US, Europe and Japan on a twelve month view. However, the appeal of the market's defensive composition needs to be reconsidered in the light of the strong bounce in equity markets following their...