Miner Company
Cyclical stocks' strong run may be due a pause despite leading markets this year, leading bank warns
Cyclical stocks, value shares and small caps have led European and US markets so far this year in a pattern that has surprised many investors, but JP Morgan's equity strategy team says the rally may be running ahead of economic reality. Strategist Mislav Matejka noted that the outperformance of economically sensitive stocks over their defensive counterparts has persisted even against the backdrop of the Iran conflict, a development he said many market participants find counterintuitive.
Cyclical stocks, value shares and small caps have led European and US markets so far this year in a pattern that has surprised many investors, but JP Morgan's equity strategy team says the rally may be running ahead of economic reality. Strategist Mislav Matejka noted that the outperformance of economically sensitive stocks over their defensive counterparts has persisted even against the backdrop of the Iran conflict, a development he said many market participants find counterintuitive.