Woodford: End of 'extraordinary' support heralds rise in volatility

Invesco Perpetual's star manager Neil Woodford has warned that the UK market is likely to see a rise in short-term volatility as the US withdraws monetary support.

The manager of the multi-billion pound Income and High Income funds does not expect the market to continue rising at the same fast pace it has enjoyed over the last year, as the US curtails its stimulus programme. Britain's FTSE 100 index has rise 12.9% year to 22 August, but Woodford said this strong performance is not reflected in the underlying economy. "The UK stock market's rise of the past year has not been matched by a commensurate improvement in the economic outlook," Woodford said. "It is likely to remain volatile in the near term as it adjusts to the likely withdrawal of ext...