JPM on the tactical rally in Cyclicals and in Value style, driven by an expected upmove in PMIs in May/June
“We think the rotation, which appears to have started last week, will have some legs as the investor positioning was very defensive – 70% of the equity funds that we track in Europe have been outperforming the benchmark as of end April, by 150bps on average, and the Value/Cyclicals were quite depressed ytd. However, investors should not overstay their welcome in the bounce, in our view, where we reiterate that it is likely to peter out as we enter summer”