But, investors should be choosy about which late cyclicals they target. In Asia, late cyclicals have perhaps stopped declining, but a new uptrend is not yet unfolding.
In Europe, perhaps due to the expectation for more monetary stimulus, late cyclicals have actually underperformed recently.
North America is the region where late cyclicals appear to have turned decisively in a more positive direction. While there is some resistance to overcome from 2011-2012, North America appears to the place where investors should concentrate their late cyclical exposure.