Anthony Bolton warns credit crisis will infect stock markets like a 'cancer'

Anthony Bolton, the legendary Fidelity fund manager, has warned that the contagion gripping global credit markets will seep into stock markets like cancer in 2008. Bolton fears that the combination of tightening credit, increasing pressure on consumer expenditure and falling property prices will have a severe impact on the economy.

He said: "I remember that the effects can take some time to work their way through, but when they do, they act like a cancer - starting in one area and then slowly spreading to others. I would expect the contagion to seep into most stock markets." His warning comes less than three weeks before he steps down from managing Fidelity UK Special Situations for good.

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