The positive reactions have been skewed toward more cyclical companies.
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"Profits also tend to be more cyclical with the economy."
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I think investors are comfortable taking on a more cyclical slant.
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Unlike tragedies, where everything just gets worse, comedies have a more cyclical form.
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The signals are strongest from the more cyclical parts of the global economy, notably manufacturing.
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He recommended diving into more cyclical areas rather than relying on U.S. dividend-yielding stocks.
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Others think it's more cyclical factors or even changes in the nature of the economy.
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You see more cyclical (sectors) taking over leadership and less of the bond-like stocks.
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The female storytellers I love are subverting this with stories that are more cyclical, elliptical, circular.
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We do think the issues that Apple has had in China are more cyclical than secular.
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More "cyclical" stocks, which do rely on market conditions, tend to underperform, according to Credit Suisse.
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But a rally with defensive sectors outperforming more cyclical sectors made Janney Montgomery Scott's Luschini wary.
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Demand for these types of properties is more cyclical during economic downturns than for residential properties.
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At the same time, travel retailers tend to be more cyclical and seasonal than conventional general retailers.
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"The industrial recession's ending, so you want to be more cyclical — tech, industrials, basic materials, energy," he said.
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"If the economic data pick up, you're going to see the market become a bit more cyclical," Krosby said.
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However, growth and more cyclical names — tech, communication services and consumer discretionary — have started to show signs of weakness.
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More cyclical mental states like mania or acute psychosis or panic disorder might lay dormant for a long time.
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Timelines in an appendix anchor the reader in these plots, but the book's chronology is more cyclical than linear.
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The view that a Trump presidency will boost growth has led to investors repositioning in more cyclical stocks, Stephenson said.
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However, semis are more cyclical and also more exposed to disruptions in U.S.–China supply chains than are software companies.
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These defensive stocks had been in favor, but they have been selling off while more cyclical names have been rising.
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Here are two ETFs, one tracking riskier and more cyclical "high-beta" stocks and the other defensive "low-volatility" names.
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Instead, his fecund miniatures brim with the possibility of regeneration; the exhibition's composition gradually comes to seem more cyclical than linear.
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Other factors include weakness in some of its more cyclical businesses offset by good growth in other parts within the group.
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But some parts of the economic landscape are more cyclical than others—that is, they have bigger booms and deeper slumps.
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Defensive shares, such as food companies, were among the worst performers as investors moved out of them to more cyclical shares.
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"Quality, stronger-growth areas/investments should become more attractive to investors relative to areas/investments with a more-cyclical profile," McCain said.
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"Europe has got more cyclical room to grow" than the US, he said, adding that several other factors contribute to his optimism.
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And value stocks — which tend to be more cyclical — are a better bet when the economy is accelerating and rates are rising.
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The pan-European STOXX 2600 benchmark index gained 20.5 percent, with a rise among more cyclical sectors contributing the most to gains.
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And while steps can be taken to mitigate economic losses, it is difficult to achieve a forceful recovery typical of more cyclical rebounds.
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Some suggest that demographic shifts like the retiring baby boomers is the main cause while other worry that it's a more cyclical factors.
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Then there is the more cyclical matter of whether a new ruling class is at last prepared to take power on the court.
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The private- and business-jet industry — particularly small cabin operations — may have some untapped upside, as well, though it may be more cyclical in nature.
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On more cyclical industries, such as materials and industrials, stocks have to fall between 4 percent and 5 percent for the order to be executed.
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Those "have led over recent years, but really the more cyclical parts of the market like banks and energy," are also showing strength, he added.
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Kerkhoff's idea at Thyssenkrupp was to separate higher quality capital goods operations of elevators, auto suppliers and core plant construction from its other more cyclical businesses.
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And if those good economic reports continue, he expects the more cyclical, risk-on parts of the market to replace utilities and telecoms as market leaders.
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"The strategy was focused on reducing the dependence on more cyclical businesses, and focusing more on more stable, consumer driven businesses," said another of the sources.
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At the same time, survey respondents said they rotated back into risk, particularly in the more cyclical parts of the market like industrials, banks and European equities.
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"Whereas the U.S. equity markets, certainly some of the more cyclical sectors, have gone through the roof without a single order having been issued yet," he added.
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"What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment-grade corporate bonds," said Collins.
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As a result, the strategist believes that while you can stick with some winning sectors like tech, investors can also start to rotate into other more cyclical sectors.
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"I think it's crazy to switch back and forth between the slowdown stocks and their more cyclical compatriots — that's something only hedge funds can get away with," Cramer said.
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"If you look at some of the more cyclical parts of the market which are very sensitive to these valuations, they really ran ahead of macro data," Oppenheimer continued.
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This strategy would have investors coming out of the more cyclical sectors such as financials and materials, which investors could then go back into once the cycle begins again.
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"The call would be over the next three to six months — value over growth, small over large and more cyclical stocks over more stable, low vol names," he said.
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" Tengler said her firm sold out of some of its consumer staples holdings that had been relative outperformers — namely Walmart and PepsiCo — and "added to some more cyclical exposure.
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" Support activities for mining (mostly oilfield services, the more cyclical component of oil and gas mining) has been following the rig count down in 2019," the Dallas Fed notes.
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De Guzman said risks posed by a slowdown in China's economy and U.S. trade protectionism are more cyclical than structural in nature, so Moody's is prepared to "look through" them.
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Wilson says the relative performance of these sectors has been flat, suggesting that more cyclical energy stocks could beat the defensive utility sectors if investors are convinced growth is improving.
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We expect IFRS 9 to make CET13 ratios more cyclical, as IFRS 9 expected losses are "point in time" estimates, in contrast to R-ELs, which are calibrated through economic cycles.
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"When the Fed was raising rates and bond yields were moving up, traditionally defensives don't do well, and more cyclical stocks tend to do better and financials do better," he said.
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"From the market peak, defensives (Utilities/Staples) tend to lead; after sell-offs of 25%, leadership remains defensive but it shifts slightly more cyclical (Banks, Semis, Consumer Durables/Apparel)," he wrote.
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What's very encouraging is that we're seeing more cyclical areas of the market have accumulated, which we actually think is very bullish for the market," Wald said Wednesday on CNBC's "Trading Nation.
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The recent outperformance of dividend plays and mega-cap growth stocks says yield vehicles and dominant secular-growth companies are being rewarded more generously than smaller, financially riskier and more cyclical names.
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Compared with the quarter's biggest losers — which included more cyclical sectors like energy, materials and retail — the gains in these groups suggest investors are embracing more defensive positioning amid widespread global uncertainty.
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A rally in value stocks would be a boon to investors who have waited in vain during this record-setting bull market for more cyclical areas like energy and financials to outperform.
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"What's happening is you're seeing a rotation away from defensive, quality, consumer-oriented stocks towards much more cyclical, lower-quality stocks that are likely to benefit from some of these policies," he said.
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"We are seeing some of the more cyclical sectors like energy, materials, continuing to move higher on the expectation that the Fed is going to let the economy run a little hot," Zaccarelli said.
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"Heinz was a staple with a good dividend, and what I didn't understand at the time was when the economy heats up, people dump these kinds of stocks for something more cyclical," Cramer said.
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"We view the deterioration in fundamentals at GE as reflecting structural challenges versus something more cyclical in which 'normal' is materially higher than where we are today," Tusa said in a note to clients.
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A question now is whether this pattern is giving way to another run by more cyclical groups — which would include financials, and could very well mean the U.S. would underperform beaten-down foreign markets.
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Despite a more cyclical business risk profile, Bayer has more stable FCF generation than other European pharma peers in the single-'A' rating category due to its strong internal cash generation and conservative capital allocation.
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The latest rally to new highs has been fairly broad, with some more cyclical bellwether groups beginning to shake off the cobwebs and perform better, taking the baton from bond-like utilities and consumer staples.
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And the largest beneficiaries of the tax cuts are the Old Economy, domestic, more cyclical companies, which tend to trade at lower multiples — so how much help will this be to the market in aggregate?
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More cyclical sectors, such as miners and financials, were the biggest weight on the index, while large, dollar-earning stocks such as British American Tobacco, Reckitt Benckiser and Diageo fell 0.5 percent to 1.1 percent.
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The acquisition is part of Bayer's shift towards the more cyclical agri-business from being a healthcare-orientated company with a below-average business risk profile but this will be balanced by greater scale and diversification.
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"The data was much worse than expectations...It is creating a risk to outlook from some of these companies in more cyclical areas like retail," said Hugo Rogers, chief investment strategist at Deltec in Nassau, Bahamas.
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Value-oriented equities and more cyclical sectors are doing well, but when these come under question, more growth-oriented stocks, such as technology, or more income-oriented sectors, like utilities and staples, do well, he said.
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Source: Yahoo Finance After leading the ferocious market bounce off the late-December bottom, value stocks and more cyclical names have given way to big growth names with less reliance on a pickup in economic activity.
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"The Bank of China came out with some measures for stimulus and therefore some of the more cyclical stocks are bouncing off oversold levels," said Will James, senior investment director for European equities at Aberdeen Standard Investments.
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The typical play would be to rotate out of more cyclical stocks and overweight the consumer staples, Wald points out, given that the defensive sector has been the best-performing sector in the average August to October period.
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Shares in more cyclical sectors, such as financials, energy and miners, were shunned this week as markets remained on edge after the deadline to comment on proposed U.S. tariffs on an additional $200 billion of Chinese imports passed.
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Global trade has grown by 2.0 percent or less annually only six times in the past and each time this has coincided with a substantial slowdown in global economic growth, but this may reflect just one more cyclical slowdown.
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"I think what may have started off as short covering, then a short squeeze, has brought in some money off the sidelines into the more cyclical areas of the market," said Robert Pavlik, chief market strategist at Boston Private Wealth.
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The strong euro is also part of the rationale for some brokers recommending investors shift from the more cyclical parts of the market to defensives, as cyclical sectors are both more exposed to global growth and to the negative currency effect.
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The jagged market moves favoring riskier, more cyclical assets over "safe" ones has been a stiff challenge to investors' collective positioning, and it set off a mini-panic in the other direction as traders grabbed for exposure to what's working now.
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"Our findings suggest scope for continued firm overall wage growth, given that lower income wage growth is more cyclical and persistent, and given potential room for further acceleration in high income wages," Goldman economist David Choi said in a research note.
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The comeback underscores how European technology stocks are on a roll again after a rapid run-up in 2017 left investors wary of eye-watering valuations and switched to more cyclical industries in December as the global economy picked up steam.
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"While I like Masco, I think that TopBuild is the hot stock right now because it's designed to be a more cyclical company that does better in a strong economy, and that big buyback tells me that TopBuild's management agrees," Cramer said.
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"There has been concern about a synchronized global slowdown in some of these more cyclical companies, like industrials, so we're seeing some earnings which is soothing concerns," said Jeff Zipper managing director of Investments at U.S. Bank Wealth Management in Palm Beach, Florida.
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More broadly, the election has prompted a shift out of stocks such as power utilities and consumer-goods producers, which are less tightly linked to the overall strength of the economy, and into more cyclical shares such as miners and construction companies.
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If we are indeed heading into a period of accelerating economic growth, as the latest employment reports seem to suggest, then you would want to have greater exposure to more cyclical, economically-sensitive companies that will benefit most from the growth acceleration.
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"If growth becomes more even and available, we may see a continuation of rotation into lower-valuation, more cyclical businesses and out of high-valuation growth stocks like technology," said James Abate, chief investment officer at Centre Asset Management in New York.
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Only a dozen or so more cyclical stocks such as banks Lloyds and Standard Chartered and energy stock were in negative territory on the FTSE, while equipment hire firm Ashtead dropped 2.8 percent, extending losses from the previous session after its earnings update.
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Some people look at it as positive, like, "Oh, it makes things easier on your body," and maybe I'm a bit more cyclical because I think, Oh, wow, you can squeeze even more exertion out of this human piece of meat. Right.
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David Einhorn, known for shorting Lehman Brothers before the 20163 financial crisis and the Wall Street firm's bankruptcy, announced a short position in oil and gas services company Core Laboratories NV, a company which he said was far more cyclical than the market realizes.
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Within equity markets a sharp rotation out of so-called "bond proxies" – dividend-paying sectors such as utilities, telecoms and healthcare which are favored by investors for their yield – and into more cyclical sectors such as banks, industrials and commodities-related sectors is already underway.
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"Technology is one of our key sectors that we're very positive on," Peters said, but specified that the bank has more recently moved preferences from solely internet and FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) toward other, more cyclical parts of the sector.
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" Asked what it would take for Sacconaghi to upgrade the stock from a market perform rating, the senior analyst said the time to buy stocks such as Apple that are more cyclical in nature is "when sentiment is lower and when valuation is lower.
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"For whatever reason, as energy prices have come back down, it's a sign that perhaps the more cyclical areas of the market ... aren't as healthy, and money has kind of rotated back to areas that grow regardless of the economy or the political environment," MacKay said.
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In the current phase of the bull market, "reliable growth companies" that play a middleman role in de facto oligopolies have hogged a lot of the oxygen, at the expense of more cyclical plays, and especially consumer-facing companies whose moats are seen to be drying up.
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Mediobanca benefits from a strong franchise in specialised businesses in Italy, which provides it with business and revenue diversification, although operating profit continues to rely on proceeds from its large equity stake in Italian insurer, Assicurazioni Generali, and fluctuate due to the bank's more cyclical businesses.
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"The more cyclical areas beating their estimate have a much higher probability of having that translate into stock price gains, looking out over the next month or two than many of the defense areas, where they have estimates revised up and their stocks continue to lag," Emanuel said.
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"Risk-on" sectors such as small-cap and bank stocks have rebounded strongly, but both groups remain just below the top of longstanding trading ranges, leaving open the chance that their recent revivals have been mechanical mean-reversion moves rather than a shift in the market's character toward more cyclical leadership.
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On the day, shares in more defensive sectors such as telecoms, utilities and healthcare added the most points to the FTSE, suggesting investors were still cautious about jumping into more cyclical sectors such as financials and energy, which have been particularly hit by the uncertainty caused by tension in global trading relationships.
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The gap between the MLV and the more cyclical MV (which tends to be recalculated more frequently and is based on the price a property would fetch in an open-market sale) provides additional protection for Fitch-rated commercial mortgage Pfandbriefe against potential falls in property prices, on top of the 60% loan to mortgage lending value (LTMLV) threshold for cover pool inclusion.
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Should operating fundamentals improve, indicating current operating weakness is more cyclical than secular in nature, leverage sustaining above 4.0x would be considered for downward pressure on the IDR/Outlook; --Increased pressure on per diem rates from customers; --Decreasing market share or profitable contract losses; --Material political decisions negatively affecting the long-term dynamics of the private correctional facilities industry; --A holistic change in the Federal government's sentiment towards privately operated prisons.
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KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: - ART completes its announced acquisitions as planned in 2H17 - Revenue growth of around 11% in 2017 and 103% in 2018 mostly led by the announced acquisitions - ART will remain acquisitive in line with its track record over the last few years, and maintain portfolio LTV at around 40% - EBITDA margins will remain above 40%, which is driven by a healthy mix of master-leases and management contracts with minimum rent - ART will roll over or replace its perpetual securities with similar instruments or common equity at its first call dates in October 2019 and June 2020 RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action - We do not expect ART's ratings to be upgraded in the medium term because the demand for its properties is more cyclical than demand for most other mainstream commercial real estate assets such as industrial, retail and office properties, and because ART's revenue visibility is considerably shorter.
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