By Michael Msika, Bloomberg Markets Live reporter and strategist
The message coming from the stock market right now is that cyclicals are in trouble and a shift to defensives has room to run given the risk of recession.
For Barclays strategists led by Emmanuel Cau, defensives or bond proxy plays such as telecoms, utilities and REITS may stay in the lead for now. Defensive sectors are under-owned, while positioning on some European cyclicals is extended, according to the latest Bank of America fund manager survey.
