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Investment market remains 'uncertain'

21 November 2007
While the overall investment market appears to be "volatile", one expert has raised concerns over the banking sector.

Jason Hollands, head of group communications for F&C, said that the bond market currently has "very little liquidity", meaning it has become increasingly difficult to "establish orderly prices" for the industry.

This trend has now begun to impact upon the equity market as well, Mr Hollands stated.

"These problems that start in the financial markets ripple over into the real economy," he remarked.

The UK is particularly prone to such developments as approximately 70 per cent of GDP is generated by "consumption from consumer activity", he added.

According to data published by the Office for National Statistics recently, the country's GDP increased by 0.8 per cent during the third quarter of the year.

This, the office noted, was the same rate of growth experienced during the previous three-month period.

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