Managers home in on cyclicals

Fund managers are bullish towards global equities, as they are set to outperform in 2004, following a favourable economic backdrop of low interest rates and high growth prospects. Fund managers feel the best opportunities are to be found in China, Japan and Europe and asset allocations are focused towards cyclical stocks. Peter Hensman, global strategist at Newton Investment Management, says: "We are watching what happens with the US interest rates. The Fed leaving interest rates on hold suggests that there will be some support for the bond and equity markets." According to Frances Hu...