GDP

A near 30% rally from the lows of early March to the peak on 1st June has been characterised by a fierce debate between investors over cyclicals versus defensives. We feel this misses the point of the rally entirely.

Capital Economics has predicted a 2% growth in world real GDP for 2010, rising to 3.5% in 2011.

Having spent the past six weeks trading in a tight range of 100 points around 4,400, the UK FTSE 100 has recently fallen back to its end of April levels.

Even a slip to fourth quartile has not persuaded Fidelity manager back towards highly leveraged cyclical stocks

The all-sector UK Purchasing Managers' Index (PMI) rose to 51 in June up from 50.4 in May indicating the fastest rate of acceleration since March 2008.

Bank of America Merrill Lynch has almost doubled its estimates for US real GDP growth for the rest of the year.

The UK economy mustered no growth in the second quarter for the first time since the early 1990s rece...