Fidelity's Greetham: 'There will surely be a bust'

The UK economy is recovering, with business surveys, consumer confidence and housing market indicators rising sharply. We are currently overweight UK equities on the basis that monetary policy is loose and a strong housing-led recovery is under way. It is tempting to think better news in the business pages means the austerity policy of recent years has worked, the economy has rebalanced and we can look forward to many years of sustainable growth. However, questions remain as to the wisdom of such a tight fiscal, loose monetary policy cocktail. Forcing house prices back into extreme ov...