Chris Rice, manager of the £300m TM Sanditon European fund, has started selling cyclicals and upped cash as he said the current market expansion is in its last stages and likened the environment to 1999 and 2007.
Rice said the latest bull phase has been "quite lengthy" after investors saw the bottom of the market and economic cycle in March 2009, with the only longer market expansion being in the 1990s. "There are many similarities between this cycle and then," he said. "Firstly, the US has been a leader in terms of valuations, stockmarket and economic growth. Additionally, we have seen the outperformance of growth relative to value. Technology did really well in the 1990s and in this cycle the leaders have been the FANGs." Do financials pose risks for investors as sector correlations leap ...
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