22nd Apr 2021. 2.14pm
UK Sector Snapshot
This month we have started to see a rotation out of aggressive sectors and into defensive sectors as concerns over the global recovery increase.
This sector rotation is to be expected given the sky-high valuations that we’re seeing in the US.
Banking stocks have fallen away with the drop in US 10-Yr treasury yields that we’ve seen during the last month. Oil & Gas stocks have also underperformed as the number of global Covid-19 cases have risen in recent weeks.
In contrast, we’re seeing a strong performance from Pharma stocks, Consumer Defensive and Utilities – signalling a rise in risk aversion among UK investors.
This research is prepared for general information only and should not be construed as any form of investment advice.