Woodford: European recovery is five years behind US

The European deleveraging process is five years behind that seen in the US and may obstruct a further rise in equity markets, according to Invesco Perpetual's Neil Woodford.

In his latest update to investors, Woodford said the UK market may be set for "some consolidation" over the remainder of 2013, in light of fuller valuations and a range of economic challenges. The latter include both a further slowing in European economic growth, and, perhaps, concerns over an end to quantitative easing in the US, suggested Invesco Perpetual's head of UK equities (pictured). "The outlook for the US, where the banks are largely through the required process of deleveraging and bank lending is returning, has improved - but this means that it is more likely that quantitat...