Woodford cautions on equities after flying start to 2013

Invesco Perpetual's Neil Woodford has suggested the FTSE All Share's bright start to 2013 could soon be derailed as the rally has not been driven by an improvement in fundamentals.

Instead the market's buoyant performance since the start of the year, during which time it has returned 12.7%, was fuelled by an abundance of liquidity, created by central bank policymakers. "In contrast to the earlier months' steadier gains, this latest increase was not assured until the last minutes of trading, but the FTSE All Share index has now delivered 11 consecutive months of positive capital returns - the first time this has been achieved since the index was formed back in 1962," said Woodford (pictured). "History would suggest that when this period of monthly gains comes to ...