Wealth management threatened by 'weak global money supply'?

Wealth management might be threatened by weak global money supply, which one expert claims will throw up some "nasty shocks" in the next few years.

Michael Baxter, editor of Investment and Business News, suggests UK output in 2011 is likely to surpass this year's level, at which point "you can say the downturn is completely over and the economy is recovering".

However, wealth management may yet be affected, as the financial specialist argues trade imbalances will throw up unexpected problems and people will begin to realise international liquidity is not robust, despite widespread quantitative easing.

A recent report from the Confederation of British Industry (CBI) revealed mixed results, with the pace of economic growth revised upward for 2010, but reduced for 2011.

June's CBI report forecast expansion of around 2.5 per cent next year, but the most recent survey has reduced this estimate, suggesting a more cautious two per cent rise in gross domestic product is likely.  ADNFCR-2318-ID-800078736-ADNFCR