Strong recovery outlook for cyclical stocks

Cyclical stocks are poised to perform well as the global economy is set to improve. Within this area, technology and biotechnology are set to make the most gains. Defensive stocks are due to suffer following the cyclical upturn, although there may still be gains to be had in this area from companies that have stable cash flows. John Hatherly, head of global analysis at M&G, says: "There has been a distinctive pattern emerging of a strong recovery in cyclical companies." The view at Sarasin is that it has been approximately five years since the last cyclical acceleration occurred and i...