2008 INSIGHT: UK managers wary

The summer sub-prime collapse has led to market volatility, liquidity concerns and inevitable recession fears. As the economy struggles to regain the strength seen in recent times, what can be expected in the New Year? Neptune UK Equity fund manager Jeremy Smith believes the consequences of the credit crunch will more than likely take a while to correct. “Tightening credit conditions will make it challenging for both financial institutions and consumer dependent companies to grow their earnings in 2008,” he says. “With high commodity price inflation feeding through to all parts of the...