With investors more
interested in cyclical stocks that do well when the global economy is growing, CNBC's Jim Cramer revisited Coca - Cola to check on the beverage maker's prospects.
For investors, if the anticipated pickup in growth materializes as expected, this would be a good time to consider taking positions
in cyclical stocks with the potential to produce healthy long - term total returns.
Stable growth stocks gained 27 percent off last years bottom, according to another Morgan Stanley index, badly trailing that 80 percent
gain in cyclical stocks (and a 40 percent trough - to - peak gain in the S&P).
Performance in last few years: This fund has been proved to be as a consistent performer for many years, however in last year its performance has gone down since it did not prefer to invest
in cyclical stocks and sectors.
(To read more about the cyclical nature of the markets, see Understanding Cycles - The Key To Market Timing and The Ups And Downs Of Investing
In Cyclical Stocks.)
This is because value strategies tend to invest
in cyclical stocks that may benefit from faster economic growth, while momentum strategies operate under the premise that stocks with strong recent performance may continue to outperform over the near term.
This is the treachery with investing
in cyclical stocks.