Old Mutual Asset Managers' Simon Murphy says he retains his faith in the merits of cylical stocks and believes the economic recovery can continue.
Defensive stocks significantly outperformed in the second quarter, following a period of strong cyclical dominance since the summer of 2010. It is not particularly difficult to see why it happened. The question for investors is - will it continue? The global economy has been buffeted by headwinds over the last six months. Political upheaval in the Middle East helped to push oil back around $120 a barrel. Each new ‘solution' to government deficits in the eurozone periphery has failed to solve the crisis, especially in Greece. Ongoing monetary tightening in China has increased fear of a...
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