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BRISBANE, Feb 1 AAP - Financial and infrastructure stocks are expected to be among the Australian bourse's most resilient investments as central banks around the world move to cut interest rates, according to Macquarie Research Equities.
Macquarie's monthly Australian Investment Strategy report said while cyclical stocks are quick out of the blocks after an interest rate cut, their gains were short-lived and it was the interest rate sensitive stocks that perform best over the medium term.
Assessing the performance of Australian sectors after the Federal Reserve easings of 1995 and 1998, the report found cyclical stocks rose about 10 per cent after the 1995 cut, with most of the gain coming within a week.
Report co-author and Macquarie Equities strategist Tim Rocks said cyclicals showed initial ...