Landmark’s Blog
The outlook has to remain cautious
Published on 10th June, 2009 at 09:42 by Eric Mowinski.
Neil Woodford, the legendary fund manager, recently gave his views on the outlook for the UK economy.
Neil Woodford, manager of the Invesco Perpetual Income fund, has an outstanding record of performance. His funds often buck the trend and infamously, in 2000, he warned against the technology bubble when everybody else was going into the market. He was eventually proved correct.
In his recent interview, the question was “there is often speculation in the press about when we are likely to see economic growth, and the signs of green shoots of recovery. Do you see any green shoots?”
Response. “Not especially at the moment, no. I think we are in a pretty difficult economic environment globally; America and the UK are two economies in particular that are having a difficult time.
Prior to the current problems, we have had over a decade and a half of very benign economic conditions; debt has built up significantly in the economy and the banking system, as we know. The scale of this debt build up is enormous, and unprecedented in terms of economic history. We could be in a weak economic environment for a prolonged period of time – I am thinking 3-4 years at least – so I don’t expect to see green shoots any time soon particularly”.
His view closely correlates with ours and sets the ground for a longer economic recovery.
Posted under the following tags: invescoperpetual, investment, economics.
Share this post using…
<<< Return to the main blog page.
Landmark Financial Planning is authorised and regulated by the Financial Services Authority. This report is based on information and opinion which are subject to change and for general information only. Do not act on this information without advice from your financial adviser. Accordingly neither Landmark Financial Planning Ltd, partner or employee will be liable in respect of any loss occasioned by any person as a result of such action or inaction.