LV= predicts market turbulence

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LV= predicts market turbulence

Fri 25th Jan 2008

Markets are likely to remain turbulent over the next few months according to almost nine out of ten financial advisors surveyed by LV=.

Some 87 per cent of advisors said they anticipate a continuation of the current volatility in the months ahead as share prices and the housing market feel the effects of the global credit crunch.

Just 31 per cent said they thought equity markets would go up rather than down over the next year and 44 per cent said they expect the housing market to take a downturn over the next six months.

Steven Daniels, managing director of LV= Asset Management, said: "Historically, investment markets have always encountered periods of turbulence on their long-term upward path, and we agree that market volatility is likely to continue in the coming months."

However he said the economic outlook should improve if the Bank of England makes further cuts in interest rates, as it is widely expected to do.

Meanwhile UK pension schemes have managed to shake off volatility on the stock market, showing an aggregate deficit of £13 billion on Tuesday compared to £25 billion on Monday according to actuaries at Mercer.

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