Two thirds of investors now believe defensive equities have become too expensive, with long-out-of-favour cyclical and value names now being viewed as "ripe for investment" across the globe, according to research by FE Trustnet.
FE questioned some 1,073 investors, and found 65% agreed defensive sectors such as tobacco and pharmaceuticals no longer offer a margin of safety in portfolios after a long period of outperformance. As a result, FE said value stocks could be "ripe for investment", with many names already beginning to gain ground this year as investors rotate out of 'bond proxies'. Charles Younes, research manager at FE, said: "It is interesting to note that the spread in valuation between these growth/defensive and value/cyclical names reached a historic high at the end of 2015. Cyclical drivers st...
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