Neil Woodford: red lights are flashing in the markets - but Brexit is a huge opportunity

There are “so many lights flashing red that I am losing count”, says fund manager Neil Woodford. But Brexit doom-mongers are profoundly wrong about the prospects for the UK economy.

Markets are making the same mistakes as they did during the dotcom bubble and the 1990s recession, says celebrity fund manager Neil Woodford. "But this time the bubble has grown even bigger and more dangerous", he told Claer Barrett and Kate Beioley in the Financial Times. There are "so many lights flashing red that I am losing count".

We have seen "the product of the biggest monetary policy experiment in history", but investors have "forgotten about risk", which is "playing out in inflated asset prices and inflated valuations". Woodford points as evidence to bitcoin surging past $10,000; European junk-bond yields yielding less than US Treasuries (government bonds); historic low levels of volatility; and the sheer amount of money being put into triple-leveraged exchange-traded funds.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.