Legg Mason's Peters: US financials 'cheapest cyclicals in market'

Legg Mason Capital Management's Sam Peters has said US financials are the cheapest cyclical stocks in the US market and will climb sharply if interest rates increase this year.

The manager of the Legg Mason Capital Management Value fund – who has 22% invested in the sector –  identified financials as one of the most attractive areas heading into 2014, especially if the Federal Reserve continues with its tapering programme and eyes changes in rates. “Financials are the cheapest cyclical growth stocks in the market, and I am invested in those that will benefit from rates going up, such as MetLife and the big banks. I do not own any that would benefit from lower rates,” he said. The manager, who searches out unloved names with a ‘price to value gap’, added ener...