Credit Suisse: Becoming More Defensive

The Global Equity Strategy team of Credit Suisse suggests today:

We reduce the size of our overweight in our favoured three cyclical sectors—autos, steel and technology—and raise food producers to overweight from benchmark. We reduce weightings in cyclicals because:

• Valuation
• Magnitude of performance
• W not V recovery
• Bond yields close to peak
• Positioning & Technicals: European fund managers have close-to-record overweight and cyclicals are 2 standard deviations overbought

We raise food producers to overweight

Click on chart to enlarge, courtesy of Credit Suisse.

Hmmm, and their S&P500 year-end target remains 920 ... not really much to gain.