Fund veteran, Crispin Odey, sees UK slump

Veteran hedge fund manager Crispin Odey believes Britain is destined to have a recession, leaving richly valued stocks vulnerable to sharp declines, he said in a letter to investors.

London-based Mr Odey said the Bank of England had engineered an unsustainable situation in which company earnings had fallen but the stock market continued to rise.

“These times are getting interesting. The FTSE 100 share index is now up 30% over five years, while earnings have fallen by 80%,” wrote Mr Odey.