BoE inaction renders recession 'inevitable' - AXA Fram

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Recession seems ‘inevitable' until the Bank of England cuts interest rates, according to Axa Framlington.

Jamie Hooper, fund manager of the Axa Framlington UK Growth fund says: "We’ve moved through denial in the last few months and then flirted with fear, desperation and panic. "The point of opportunity is near the bottom of the curve close to despondency. It still remains a bear market rally,” he adds. Hooper believes there could be a 20% cumulative earnings decline over the next two to three years. He has consequently adopted a cautious portfolio with a preference for stocks with more consistent and visible earnings growth. Strong balance sheets are an important differentiator, he adds. ...

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