You are here: Home - Investing - Experienced Investor - News -

Woodford: UK economy faces bigger challenges than Brexit

0
Written by:
13/06/2016
Neil Woodford has said a number of global issues will have a “more profound influence” over the UK economy in the long run than the result of the impending Brexit vote.

The country’s best known fund manager said he was “very cautious” about the outlook for the UK and European economies due to a number of “linked challenges” but that these problems would not be resolved by an ‘in’ or ‘out’ vote during next week’s EU referendum.

He called for “co-ordinated global policy action” to tackle these “multi-regional, global problems” similar to the “gathering of delegates from 44 nations in the aftermath of World War II’.

He listed the challenges policymakers face, in no particular order, as: excessive consumer and government debt; excessive capacity and deflation; rapidly ageing demographics; very weak productivity growth and a lack of investment.

Woodford also highlighted unfunded retirement commitments common among Western democracies, inadequate savings, wealth inequality, the rise of political populism and the challenges posed by the scale of the Chinese credit bubble and the implications of its rapid deflation.

The manager, who runs the CF Woodford Equity Income fund, also confirmed that he won’t be altering his investment strategy, whatever the outcome of the EU vote.

“We commissioned some research several months ago, which helped to inform our view about the likely economic implications of ‘remain’ or ‘leave’. We have spent some time and expended much intellectual effort testing our hypotheses and with only a few days to go to the vote, we stand by our initial conclusions. They were, for the record, that we could not construct a convincing long-term economic argument that supported either ‘remain’ or ‘leave’,” he said.

He admitted a ‘leave’ vote would be “destabilising” for investors and governments across Europe and “this would take time to dissipate”.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Packaged bank accounts: are they worth it?

Complaints about packaged bank accounts more than doubled in the last year and there’s been a marked decline in the...

Close