Finance guru is gloomy

by Ed Bowsher on 04 June 2009  |  0 comments
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The downturn has a hell of a lot further to go.

Check out these comments by genius fund manager, Neil Woodford.

He says that the economic downturn has a 'hell' of a lot of further to go. According to Woodford, we won't get a recovery until the UK and global economies have rebalanced.

'My view is the problems that led to this recession - problems of excessive leverage in the consumer economy, excessive leverage in the banking system - have not been corrected at all,' says Woodford.

Why you should listen to this guy?

Neil Woodford has a very impressive track record. When most investors were piling into technology shares in the 1999/2000, he stayed out and was proved right. Then in 2007, when bank shares seemed cheap to many people, he spotted that their balance sheets were in a mess and he didn't invest in any banks.

So even if you're not interested in the stock market, I think it's worth listening to Woodford. A struggling economy is bad news for all of us.