U.S. Cyclicals/Defensives vs. ISM Manufacturing PMI Chart showing the large divergence between U.S. cyclicals/defensives and the ISM Manufacturing PMI. Eventually, the gap should close soon. Image: Topdown Charts
Cyclicals vs. Defensives Performance Cyclicals vs. defensives are now two standard deviations from 12M average, as risk-on tone grips stocks. Image: Morgan Stanley Research
U.S. Cyclicals vs. Defensives It’s all about sector rotation: the cyclicals vs. defensives trade is now pricing a growth acceleration. Image: Goldman Sachs Global Investment Research
U.S. 10-Year Treasury Yield and Euro Area Cyclicals Relative to Defensives Chart suggesting that euro area cyclicals outperform defensives, when U.S. bond yields rise. Image: Credit Suisse Research
U.S. Cyclicals vs. Defensives Cyclicals vs. defensives have been a good indicator for monitoring investor sentiment. Image: Goldman Sachs Global Investment Research
S&P 500 Cyclicals Relative to Defensives Chart suggesting that S&P 500 cyclicals could outperform defensives in 2020, based on higher U.S. nominal GDP growth. Image: Stifel
Rallies in World Cyclicals vs. Defensives Since the global financial crisis, average rallies in world cyclicals vs. defensives have lasted only four months. Image: Goldman Sachs Global Investment Research
Cyclicals vs. S&P 500 Chart suggesting that cyclicals are not overvalued vs. S&P 500. Image: Goldman Sachs Global Investment Research
Global Manufacturing PMI and Multi-Asset Portfolio of Cyclicals Using global manufacturing PMI to trade cyclicals in different business cycle phases. Image: J.P. Morgan
U.S. ISM Manufacturing Index and Cyclicals EPS Revision This chart shows the correlation between the ISM Manufacturing Index and cyclicals EPS revision, suggesting that 4Q19 will see a reset, with capital goods pricing in an actual earnings recession. Image: Morgan Stanley Research