Cyclicals' momentum continuing

Cyclical stocks with high growth momentum offer growth prospects complementing those of highly rated 'pure growth' stocks, some analysts believe. David Mathers, director of research at Credit Suisse First Boston, says: "In early 2000 we have seen an almost unprecedented structure to the relative valuation of stocks within the equity market. "The gap between high and low P/E stocks has hardly ever been wider. The world of low inflation and the specific role technology plays in underpinning this does argue for such a change. "Cyclical influences still have a role to play and we particularl...