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Market Tips: The Cyclical Betting Playbook

Global stocks rose for the third straight day on Wednesday as better-than-expected U.S. company earnings and firm economic data raised expectations that the recovery would keep strong momentum in the first quarter.

Experts told CNBC to bet on cyclicals during the recovery period, but warned that investors must be selective on their plays in the sector.

Cyclical Recovery to Continue

The cyclical recovery will continue in 2010 but investors have to be selective and look for structural growth stories as the economy normalizes, advises Paul Taylor, portfolio manager at Fidelity International.

Betting On Cyclicals

The earnings from cyclical businesses could surprise on the upside, says Sean Fenton, portfolio manager at Tribeca Investment Partners, ahead of the Aussie earnings season which kicks off next week.

Buy on Dips

Buy on dips or invest in distressed asset plays, advises Len Blum, managing director at Westwood Capital.

Emerging Markets to Drive Recovery

Emerging markets are going to drive the recovery going forward, says Sandy Flockhart, chairman of personal and commercial banking at HSBC. He sheds light on business confidence around the globe.

Buy Commodity Plays on Dips

This market correction provides an opportunity to accumulate commodity plays, says Chew Soon Gek, Asia head of portfolio management & investment strategy at Clariden Leu.

Commodities in Technical Bounce?

Renewed economic optimism is driving the rally in commodity markets, says Matt Zeman, trader at La Salle Futures Group.

Carry Trades Still In Vogue

Carry trades are still the theme dominating the currency markets, notes Monica Fan, senior currency product engineer at State Street Global Advisors.

Positive on the Aussie

Adrian Foster, Asia Pacific head of financial markets research at Rabobank, is starting to turn positive on the Aussie dollar.

Safe to Bet on the Aussie?

The RBA could raise rates by 100bps over the course of 2010, predicts Dariusz Kowalczyk, chief investment strategist at SJS Markets. He tells CNBC how this would impact the Aussie dollar going forward.

Cashing In on Chinese Consumers

Jessie Qian, senior analyst, China consumer sector at Macquarie Securities, is more bullish about high-end retailers as compared to mass market department stores. She explains why and names her top picks and pans in this space.

Returning Japanese Banks to Profitability

Japanese banks are likely to struggle with low profitability for the whole of this financial year, warns David Marshall, MD for financial institutions at Fitch Ratings.

Worst Not Over for Aviation Industry

The worst is not over for the aviation industry, cautions Charles Alcock, editor at Aviation News International. He tells CNBC how that pain is likely to manifest itself.

Contact Europe: Economy

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