Odey: Stockmarket could fall 80% as UK heads for recession

Shorted several UK companies

Hedge fund manager Crispin Odey has warned UK equities could fall by as much as 80% as the country moves towards a potential recession.

In its latest factsheet for the European Inc hedge fund, Odey (pictured) said shares were likely to come under pressure as earnings have fallen by 80% while the FTSE 100 is up 30% over five years.  Last month, the index reached a record high after breaking through the 7,000 mark, having been boosted by the fall in sterling. Odey said: "On an earnings yield of 1.6%, the stockmarket could fall by 80% and, provided profits did not fall, would be on a 13x P/E multiple. "We are now destined for a recession in the UK as well as inflation. It will be difficult for the stockmarket to remai...