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Experts: Major recession will not happen

Advice for coping with the current economic downturn has been given by a panel of experts.

Edward Bonham Carter, chief executive at Jupiter Asset Management, said that customers who hold investments should "hold their nerve" despite a significant downturn in the markets.

The ongoing credit crunch has seen a tightening-up of lending between banks - a slowdown that has had a knock-on effect on the economy as a whole.

Equities have been hit particularly hard, but Mr Bonham Carter said that this should not lead investors to avoid them altogether.

He commented: "Equities represent attractive investments relative to other asset classes…investors should hold their nerve and view sharp downturns in share prices as a long-term buying opportunity."

Senior partner at accountants Baker Tilly, George Bull, was similarly upbeat - saying that it was "difficult to imagine" that the current economic downturn would match previous financial crises.

Managing director at Whitechurch Securities agreed that economic conditions did not form a "precursor to a global depression".

He added: "While a slowdown is inevitable, I don't believe we are facing an economic picture consistent with a deep and prolonged recession."

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