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Rally in cyclicals ‘nearing end’
Year-to-date gains on cyclical stocks like miners means higher quality stocks with good balance sheets may now be more attractive, argue analysts at Bank of America-Merrill Lynch. Fund managers are loading up on cyclical stocks but valuations are starting to look stretched. ‘History argues that while high quality stocks often lag in late bull market rallies, they usually make up for it when the cycle rolls over,’ it says. (WC)