She notes that the group has historically underperformed the market for 1-3 quarters leading up to an economic downturn, due to cyclical exposure and concerns about weaker consumer spending.

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"Significant management changes have been implemented, a universal banking business model offers its own diversification attractions, whilst cyclical economic exposure and the lack of government ownership also appeal, " he said.

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Out go outfits with heavy exposure to cyclical commodities or peculiar accounting practices.

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More than just another deal for Dow, the sale of 50.0% of its plastics business to a Kuwaiti state company was part of its strategy to reduce its exposure to the cyclical nature of the commodity chemicals business.

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Additionally, URS has exposure (albeit smaller than its more cyclical peers) to oil, gas, and power end markets, which are beginning to pick up with higher oil prices.

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Conversely, UBS says some economically sensitive or so-called cyclical sectors such as capital goods and autos have outperformed because of their lower exposure to troubled parts of Europe.

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