Sentiment taking turn for the worse

At the beginning of June, there were grounds for thinking economic recovery was on its way. Interest rates were coming down around the world and, in such a situation, the appropriate strategy is to reduce defensive sectors like pharmaceuticals, which, in any case, appeared to be fully valued, and concentrate on cyclical sectors that can be expected to benefit when the economy picks up. However, during June, UK economic sentiment appeared to take a turn for the worse after some pessimistic market data. Inflation was higher than expected and employment figures were disappointing. This was a...