The Times, They Are a-Changing
Friday, June 18th, 2021 Categories: Eurozone, Sector Strategy, United Kingdom
Reducing industrial cyclicals and adding to consumer cyclicals
Perhaps the most obvious symbol of the changes under way is the fact that Europe, not the US, has been our preferred equity region since late May. This isn’t the result of one single trend or a dramatic headline. It has happened gradually, as marginal buying shifted from the US to Europe. It is the same with the shift from industrial to consumer cyclicals. No-one doubts the coming industrial recovery, but our charts suggest it is already in the price, so investors are starting to look for the next big idea.