The impact of the recent credit crunch could affect a number of investment sectors, it has been claimed.

Gervais Williams, fund manager at Gartmore, suggested a cautious outlook for the stock market and the UK’s economy this year.

Arguing that the credit crunch “is not easily solved”, Mr Williams stated that banks would look to the equity market to raise new funding in 2008.

“I think that consumers will find it increasingly difficult to access borrowings so I expect weakness in housing, retailing and the leisure sector,” he warned.

Despite these sectors experiencing difficulty, Mr Williams noted that people within the export business may benefit from new opportunities created by further weakening of sterling.

In related news, a recent survey conducted by AXA Wealth Management revealed that 49 per cent of independent financial advisers will look to recommend less risky investments to their customers this year.

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