Woodford shoots down Chancellor's growth forecast

Woodford, who runs the £10.3bn Invesco Perpetual High Income and £8bn Income funds, says the economy is likely to struggle for longer than anticipated because of the government's austerity measures. As a result, he questioned the recent growth forecast for 2011 of 1.7%. He says: "The economy background is very challenging at the moment and is likely to remain so for some time. "Therefore I don't see growth coming through as the Chancellor has forecast." He says valuation expectations look overextended for some stocks, and as such he has only 25% of revenues of his portfolios coming...