Woodford targets defensives over cyclicals

He pinpoints pharmaceuticals, tobacco and utilities as sectors where investors can make money despite the recession. Woodford says: "I am erring on the side of defensives and I have been focusing on the resilience of business models. It is far too early to go fishing in deep cyclical areas of the market despite the tough economic environment." In a bearish prognosis of the UK economy, Woodford sees no 'green shoots' and says the crisis will "encompass a prolonged adjustment", with at least three to four years before a recovery begins. He also expects sterling to weaken and fall further...