The bank says its client flow data shows almost no selling of cyclical stocks in the current correction.
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Brisk domestic demand is the main driver, which is why cyclical stocks, such as retailers, have done well.
Fifth, Wall Street is facing a slow growth world market environment that favors non-cyclical over cyclical stocks.
Instead they are seeking promising yield, creating an environment wherein dividends continue be favored, even while the cyclical stocks accelerate.
Cyclical stocks should perform handsomely in 2013, as improving fundamentals and rock bottom expectations force an upward reassessment of valuations.
In the past, deeply cyclical stocks like CAT were never considered high-quality stocks, but today they are mistakenly considered as such.
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If the U.S. economic recovery is gaining speed, inventories will begin to swell, leading investors to take more interest in cyclical stocks.
Deeply cyclical stocks have traditionally traded at a discount to the market.
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XFN's indices one for high-tech shares, one for cyclical stocks, and so on.
They're looking for bond substitutes, and it doesn't mean that the money is going to exit and go either to cyclical stocks or go to cash.
As a result, health care stocks remained weak even as the broad market, led by resurgent cyclical stocks such as Caterpillar ( CAT), mounted an exuberant recovery.
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For instance, for the first time since the market peak on April 15, UBS says it has seen more net buying of cyclical stocks than defensive names.
Investors concerned about the slow-down in the world economy may want to stay away from cyclical stocks like retailers that do not perform well in such an environment.
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Not too long ago, shares of railroad companies were considered as just the chugging-along type stocks plain cyclical stocks that lacked the exciting elements that growth stocks have.
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Caterpillar, one of a host of cyclical stocks that are benefiting from the resumption of global economic growth, reported strong first-quarter earnings and hiked guidance for the full year.
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Swiss bank Credit Suisse is suggesting investors boost their holdings in bank stocks saying banks have underperformed cyclical stocks and they are the biggest underweight sector on fund manager surveys in Europe.
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And cyclical stocks can be tricky to own.
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Meanwhile, consumer cyclical stocks led the market lower.
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"This has been such a defensive-driven market, and today may well be the beginning of a rotation to more cyclical stocks, which would bolster this idea that this rally has legs to run, " Ms. Hooper said.
FedEx is a component in the category of cyclical stocks, which also includes railroad carriers and aviation stocks like CSX and Boeing, that serve as indicators for economic improvement in the shipping and transportation industry.
MarketMind now states that commodities and stocks (cyclical) are going to become positively correlated as never before.
In early parts of recovery, for example, an optimistic surge may benefit bank stocks and ignore cyclical sectors like consumer staples and industrials.
The Philadelphia Semiconductor Index is up about 17% from the July lows, but Martchev warns that "multiples in this group are extremely high" and that the stocks are very cyclical.
Stocks across a number of cyclical areas of the market have benefited from this global improvement, including industrial companies such as trucking, rail and airlines.
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However, the last three years, which include the financial meltdown of 2007 through 2009, ravaged large value stocks, and particularly financial and cyclical issues.
Half of his current tech holdings are invested in semiconductor and semiconductor-equipment stocks, a bet on a cyclical turn in that portion of the industry.
Using previous recessions as a guide, we believe group-wide underperformance vs. the market would be possible, with Media and Entertainment stocks struggling (due to higher cyclical exposures) and Cable and Satellite TV possibly losing some of its defensive appeal amidst a maturing and increasingly competitive Pay TV market.
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