enthusiasm for cyclicals

Cyclicals remain in favour with growth managers although the main downside threat would be continued rises in interest rates Cyclicals have performed relatively well from the beginning of this year as it became clear that the UK economy was heading for a soft landing and revived growth in contrast to the recessionary expectations prevailing at the end of 1998. The FTSE 250 Index, which has significant exposure to the cyclical sectors such as engineering stocks, is up 24.7% in the year to 13 September while the FTSE SmallCap Index is up 37.08% in the same time period The unexpected rise in...