Thank you for another exceptionally interesting Long-Term Commentary. Once again, you have referred to "cyclicals" and given mining as an example. Which other sectors would you include in this category?

Eoin Treacy's view

Thank you for your kinds words and this question which other subscribers may have an interest in. Generally speaking, miners, shipping, banking and technology are considered cyclical sectors. 

Quite whether technology still fits into that groove is arguable right now and would largely depend I suspect on whether one is taking about hardware/infrastructure companies versus services/software companies. 

Miners and shipping are both leveraged to the uptick in global growth that generally precedes a tightening cycle much as we are seeing right now. 

Meanwhile banks tend to have better margins as interest rates rise. 

Iain Little used this graphic in one of his presentations for Markets Now a while back and it’s the best graphic representation of cyclicals versus non-cyclicals and high versus low quality earnings I’ve seen.