Managers claim cyclical rally is over - S&P

Growth fund managers are calling the end of the cyclical rally which drove returns after March's equity market low, according to Standard & Poors.

The S&P Fund Services update reveals managers believe defensive stocks now look cheap and want more evidence of earnings growth from cyclicals. Lead analyst Alison Cratchley says: "Funds that moved away from defensive positioning and took on more cyclical exposure did best." But she adds: "Looking ahead, managers think defensive stocks are looking cheap. While [Standard Life Investment's Karen] Robertson expects a cyclical rally in the fourth quarter, she thinks that, at these levels, defensive stocks like Vodafone and tobacco companies look cheap." Henderson New Star's Trevor Gree...