Investors evaluating their positions in the European equity markets are being advised to hold onto cyclical stocks for the moment and to be prepared to buy financials. Morgan Stanley Dean Witter believes the performance of cyclical stocks will improve in the second half of 2000 suggesting investors should wait for the sector to peak before taking a profit.
Among the stocks favoured by the brokers within the cyclical sector is CRH which is ranked alongside Rio Tinto, and Stora Enso as a strong buy at the moment.
Beyond that, it suggests investors should consider buying selected financial stocks. Those it expects strongly to outperform within the financial sector include Bank of Ireland, Deutsche Bank, SEB and Fortis.
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