Cyclicals Becoming Less Attractive, Causeway's Ellen Lee Says

The video discusses the current state of the market cycle, highlighting a recovery in cyclical stocks with increased valuations. It explores risk management strategies in anticipation of market volatility and details a portfolio management approach focusing on sector rotation from cyclical to defensive sectors like utilities and consumer staples.

What has been the performance of the US SMP cyclicals index over the past 12 months?

• It has decreased by 50%

• It has increased by 89%

• It has remained stable

• It has decreased by 89%

Why is the risk-reward tradeoff in cyclical stocks considered less attractive now?

• Because the economy is declining

• Because there is no anticipated volatility

• Because the valuations have become more demanding

• Because the broader index is outperforming

What strategy has been employed to manage anticipated volatility?

• Focusing on international markets

• Taking risk off the table

• Investing in technology stocks

• Increasing investment in cyclical stocks

What is the focus of Causeway's investment strategy?

• A concentrated portfolio with a bottom-up valuation

• Focusing solely on technology sectors

• A diversified portfolio with a top-down approach

• Investing heavily in cyclical stocks

Which sectors are considered to have better opportunities according to the speaker?

• Technology and finance

• Automotive and aerospace

• Real estate and energy

• Utilities, pharma, and consumer staples