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‘Stimulus is not enough’

Artemis fund manager William Littlewood says the Government’s fiscal stimulus and quantitative easing are not enough to steer the economy out of the crisis.

Speaking on Monday at a briefing on his new strategic assets fund which launches in May, Littlewood said the UK is facing a 1930s-style recession which could be “nastier” and more prolonged than expected.

He said: “We have seen enormous fiscal stimulus and we have seen quantitative easing. In my view, it is not enough, they are going to need more to turn things around.” Littlewood said his new Ucits-enabled fund would be defensively positioned at launch, with 45 per cent in cash and an expected initial allocation of 35 per cent in equities, largely in the UK and US.

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